QQQ vs XLRE
Invesco QQQ Trust, Series 1 vs State Street Real Estate Select Sector SPDR ETF
Which is better, QQQ or XLRE?
Large Cap Growth against Large Cap Blend.
XLRE has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 61.7%.
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 | XLRE |
|---|---|---|
| Expense Ratio | 0.18% | 0.08%Best |
| AUM | $498.6B | $7.7B |
| Dividend Yield | 0.42% | 3.19% |
| Holdings | 321 | 66 |
| YTD Return | +21.69%Best | +6.09% |
| 1Y Return | +24.10%Best | +5.86% |
| 3Y Return (annualized) | +27.05%Best | +10.17% |
| 5Y Return (annualized) | +16.31%Best | +1.72% |
| Volatility (annualized) | 18.6% | 17.0%Best |
| Max Drawdown | -35.1%Best | -39.3% |
| $10,000 over 5 years | $21,286Best | $10,890 |
| Top 10 Weight | 47.2%Best | 61.7% |
| Fund Family | Invesco (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Oct 7, 2015 |
Volatility and max drawdown are measured over the window both funds cover: Oct 8, 2015 to Oct 13, 2026 (11 years).
QQQ vs XLRE 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 11 years both funds cover.
QQQ vs XLRE Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street Real Estate Select Sector SPDR ETF (XLRE) is an ETF from SPDR State Street Global Advisors. Over the past year QQQ returned +24.10% while XLRE returned +5.86%. Year to date, QQQ is up 21.69% versus a gain of 6.09% for XLRE.
Over three years, QQQ compounded at +27.05% per year against +10.17% for XLRE; over five years the annualized figures are +16.31% and +1.72% respectively. Across the full 11-year window we track, QQQ has the edge at +19.70% annualized vs +4.81%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 17.0% for XLRE. 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 -35.1% for QQQ and -39.3% for XLRE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while XLRE charges 0.08%. On a $10,000 position that is $18 vs $8 annually, a gap of $10 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 3.19% for XLRE.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 31 in XLRE, totalling 99.9% and 99.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 102 positions we hold weights for in QQQ and 31 in XLRE, against full books of 321 and 66.
What only one of them owns
Our book lists 31 positions for XLRE that do not appear in our book for QQQ (99.8% of the fund), and 96 for QQQ that do not appear in XLRE (97.8%).
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 XLRE 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 XLRE?
QQQ has an expense ratio of 0.18% while XLRE charges 0.08%. XLRE is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, QQQ or XLRE?
Over the past year QQQ returned +24.10% vs +5.86% for XLRE, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), QQQ annualized +19.70% vs +4.81% for XLRE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XLRE?
QQQ has been the more volatile fund at 18.6% annualized versus 17.0% for XLRE. Worst drawdown: QQQ -35.1% vs XLRE -39.3%.
Should I hold both QQQ and XLRE?
QQQ and XLRE have a monthly-return correlation of 0.60, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or XLRE?
QQQ yields 0.42% while XLRE yields 3.19%, so XLRE currently pays the higher dividend yield.
Is XLRE better than QQQ?
XLRE has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 47.2% of the fund in its ten largest positions against 61.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.