QQQ vs XBI
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Biotech ETF
Which is better, QQQ or XBI?
Large Cap Growth against Small Cap Blend.
QQQ has a lower expense ratio. QQQ led over 5Y and the full window, XBI over 1Y and 3Y. XBI is less concentrated, with 16.1% of the fund in its ten largest positions against 46.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | XBI |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.35% |
| AUM | $506.1B | $10.5B |
| Dividend Yield | 0.42% | 0.35% |
| Holdings | 321 | 313 |
| YTD Return | +19.30% | +20.90%Best |
| 1Y Return | +22.47% | +40.22%Best |
| 3Y Return (annualized) | +26.18% | +28.18%Best |
| 5Y Return (annualized) | +15.42%Best | +3.05% |
| Volatility (annualized) | 18.5%Best | 26.9% |
| Max Drawdown | -53.5%Best | -63.9% |
| $10,000 over 5 years | $20,484Best | $11,621 |
| Top 10 Weight | 46.7% | 16.1%Best |
| Fund Family | Invesco (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Small Cap Blend |
| Inception | Mar 10, 1999 | Jan 31, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Feb 6, 2006 to Oct 14, 2026 (20.7 years).
QQQ vs XBI growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20.7 years both funds cover.
QQQ vs XBI Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street SPDR S&P Biotech ETF (XBI) is an ETF from State Street Investment Management. Over the past year QQQ returned +22.47% while XBI returned +40.22%. Year to date, QQQ is up 19.30% versus a gain of 20.90% for XBI.
Over three years, QQQ compounded at +26.18% per year against +28.18% for XBI; over five years the annualized figures are +15.42% and +3.05% respectively. Across the full 21-year window we track, QQQ has the edge at +15.14% annualized vs +11.21%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XBI has been the more volatile fund, with annualized monthly volatility of 26.9% compared with 18.5% for QQQ. 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 -53.5% for QQQ and -63.9% for XBI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.57. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while XBI 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 0.42% against 0.35% for XBI.
Holdings Overlap
2.7% of QQQ's money is in holdings XBI also owns. 5.5% of XBI's money is in holdings QQQ also owns.
XBI and QQQ share little of their money.
5 positions in common, counted across the 101 positions we hold weights for in QQQ and 149 in XBI, against full books of 321 and 313.
What only one of them owns
Our book lists 137 positions for XBI that do not appear in our book for QQQ (89.9% of the fund), and 88 for QQQ that do not appear in XBI (93.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of QQQ and XBI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or XBI?
QQQ has an expense ratio of 0.18% while XBI charges 0.35%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, QQQ or XBI?
Over the past year QQQ returned +22.47% vs +40.22% for XBI, so XBI leads on 1-year performance. Over the longest common window we track (21 years), QQQ annualized +15.14% vs +11.21% for XBI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XBI?
XBI has been the more volatile fund at 26.9% annualized versus 18.5% for QQQ. Worst drawdown: QQQ -53.5% vs XBI -63.9%.
Should I hold both QQQ and XBI?
QQQ and XBI have a monthly-return correlation of 0.57, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and XBI?
5.5% of XBI's money is in holdings QQQ also owns. 5.5% of XBI's is in holdings QQQ also owns. They hold 5 positions in common, counted across the 101 positions we hold weights for in QQQ and 149 in XBI.
Which pays a higher dividend, QQQ or XBI?
QQQ yields 0.42% while XBI yields 0.35%, so QQQ currently pays the higher dividend yield.
Is XBI better than QQQ?
QQQ has a lower expense ratio. QQQ led over 5Y and the full window, XBI over 1Y and 3Y. XBI is less concentrated, with 16.1% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.