QQQ vs XSW
Invesco QQQ Trust, Series 1 vs State Street SPDR S&P Software & Services ETF
Which is better, QQQ or XSW?
Large Cap Growth against Mid Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. XSW is less concentrated, with 11.2% 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 | XSW |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.35% |
| AUM | $506.1B | $473M |
| Dividend Yield | 0.42% | 0.00% |
| Holdings | 321 | 133 |
| YTD Return | +19.30%Best | +7.71% |
| 1Y Return | +22.47%Best | -1.35% |
| 3Y Return (annualized) | +26.18%Best | +16.39% |
| 5Y Return (annualized) | +15.42%Best | +2.10% |
| Volatility (annualized) | 17.5%Best | 20.9% |
| Max Drawdown | -35.1%Best | -45.4% |
| $10,000 over 5 years | $20,484Best | $11,095 |
| Top 10 Weight | 46.7% | 11.2%Best |
| Fund Family | Invesco (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Growth |
| Inception | Mar 10, 1999 | Sep 28, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2011 to Oct 14, 2026 (15 years).
QQQ vs XSW 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 15 years both funds cover.
QQQ vs XSW Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street SPDR S&P Software & Services ETF (XSW) is an ETF from State Street Investment Management. Over the past year QQQ returned +22.47% while XSW returned -1.35%. Year to date, QQQ is up 19.30% versus a gain of 7.71% for XSW.
Over three years, QQQ compounded at +26.18% per year against +16.39% for XSW; over five years the annualized figures are +15.42% and +2.10% respectively. Across the full 15-year window we track, QQQ has the edge at +19.17% annualized vs +15.53%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSW has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 17.5% 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 -35.1% for QQQ and -45.4% for XSW. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while XSW 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 0.00% for XSW.
Holdings Overlap
13.7% of QQQ's money is in holdings XSW also owns. 11.2% of XSW's money is in holdings QQQ also owns.
QQQ and XSW share little of their money.
16 positions in common, counted across the 101 positions we hold weights for in QQQ and 132 in XSW, against full books of 321 and 133.
What only one of them owns
Measured across the 101 and 132 positions we hold weights for.
QQQ holds 77 positions XSW does not, 82.6% of the fund.
Largest: NVDA 8.33%, AAPL 7.35%, MU 5.02%, AMD 4.17%, AMZN 4.07%
Top Shared Holdings
| Stock | Weight in QQQ | Weight in XSW | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.76% | 0.81% | 4.95% |
| PLTRPalantir Technologies Inc | 1.80% | 0.83% | 0.97% |
| PANWPalo Alto Networks Inc. | 1.35% | 0.81% | 0.54% |
| CRWDCrowdstrike Holdings Inc. Class A | 1.13% | 0.83% | 0.30% |
| FTNTFortinet Inc. | 0.55% | 0.73% | 0.18% |
| ADBEAdobe Inc | 0.40% | 0.70% | 0.30% |
| INTUIntuit, Inc. | 0.32% | 0.73% | 0.41% |
| WDAYWorkday, Inc., Class A | 0.16% | 0.87% | 0.71% |
| DDOGDatadog Inc. Class A | 0.38% | 0.63% | 0.25% |
| MSTRMicrostrategy Inc Common | 0.23% | 0.73% | 0.50% |
You are not choosing between two funds in isolation.
Whichever of QQQ and XSW 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 XSW?
QQQ has an expense ratio of 0.18% while XSW charges 0.35%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, QQQ or XSW?
Over the past year QQQ returned +22.47% vs -1.35% for XSW, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), QQQ annualized +19.17% vs +15.53% for XSW. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XSW?
XSW has been the more volatile fund at 20.9% annualized versus 17.5% for QQQ. Worst drawdown: QQQ -35.1% vs XSW -45.4%.
Should I hold both QQQ and XSW?
QQQ and XSW have a monthly-return correlation of 0.79, 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 XSW?
13.7% of QQQ's money is in holdings XSW also owns. 11.2% of XSW's is in holdings QQQ also owns. They hold 16 positions in common, counted across the 101 positions we hold weights for in QQQ and 132 in XSW.
Which pays a higher dividend, QQQ or XSW?
QQQ yields 0.42% while XSW yields 0.00%, so QQQ currently pays the higher dividend yield.
Is XSW better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. XSW is less concentrated, with 11.2% 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.