QQQ vs XTN
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Transportation ETF
Quick Verdict
QQQ has a lower expense ratio. XTN delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | XTN | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $455.8B | $401M | |
| Dividend Yield | 0.41% | 0.64% | |
| Holdings | 108 | 45 | |
| YTD Return | +18.31% | +19.82% | |
| 1Y Return | +25.37% | +32.35% | |
| 3Y Return (annualized) | +25.79% | +10.80% | |
| 5Y Return (annualized) | +15.20% | +6.01% | |
| Volatility (annualized) | 30.6% | 23.1% | |
| Max Drawdown | -83.0% | -44.9% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 26, 2011 |
QQQ vs XTN Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR S&P Transportation ETF (XTN) is a ETF from State Street Investment Management. Over the past year QQQ returned +25.37% while XTN returned +32.35%. Year to date, QQQ is up 18.31% versus a gain of 19.82% for XTN.
Over three years, QQQ compounded at +25.79% per year against +10.80% for XTN; over five years the annualized figures are +15.20% and +6.01% respectively. Across the full 16-year window we track, QQQ has the edge at +13.10% annualized vs +10.18%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 23.1% for XTN. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -83.0% for QQQ and -44.9% for XTN. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XTN charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.64% for XTN.
Holdings Overlap
QQQ and XTN share 0 holdings out of 106 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or XTN?
QQQ has an expense ratio of 0.18% while XTN charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or XTN?
Over the past year QQQ returned +25.37% vs +32.35% for XTN, so XTN leads on 1-year performance. Over the longest common window we track (16 years), QQQ annualized +13.10% vs +10.18% for XTN. Past performance does not guarantee future results.
Which is riskier, QQQ or XTN?
QQQ has been the more volatile fund at 30.6% annualized versus 23.1% for XTN. Worst drawdown: QQQ -83.0% vs XTN -44.9%.
Should I hold both QQQ and XTN?
QQQ and XTN have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XTN?
QQQ and XTN share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, QQQ or XTN?
QQQ yields 0.41% while XTN yields 0.64%, so XTN currently pays the higher dividend yield.
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