QQQ vs. XLC
QQQ (Invesco QQQ ETF) and XLC (Communication Services Select Sector SPDR Fund) are both exchange-traded funds - QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index, while XLC is a Communications Equities fund tracking the S&P Communication Services Select Sector Index. Both are passively managed. Over the past 5 years, QQQ returned 16.85%/yr vs 8.03%/yr for XLC. Their correlation of 0.82 suggests significant overlap in exposure. QQQ charges 0.18%/yr vs 0.13%/yr for XLC.
Performance
QQQ vs. XLC - Performance Comparison
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Returns By Period
In the year-to-date period, QQQ achieves a 17.57% return, which is significantly higher than XLC's -4.85% return.
QQQ
- 1D
- 0.59%
- 1M
- 0.22%
- YTD
- 17.57%
- 6M
- 17.85%
- 1Y
- 37.55%
- 3Y*
- 26.43%
- 5Y*
- 16.85%
- 10Y*
- 21.79%
XLC
- 1D
- -0.42%
- 1M
- -4.66%
- YTD
- -4.85%
- 6M
- -3.59%
- 1Y
- 10.19%
- 3Y*
- 21.60%
- 5Y*
- 8.03%
- 10Y*
- —
QQQ vs. XLC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
QQQ Invesco QQQ ETF | 17.57% | 20.77% | 25.58% | 54.86% | -32.58% | 27.42% | 48.62% | 38.96% | -12.19% |
XLC Communication Services Select Sector SPDR Fund | -4.85% | 23.08% | 34.71% | 52.82% | -37.63% | 15.96% | 26.90% | 31.05% | -16.45% |
Correlation
The correlation between QQQ and XLC is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.55 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.71 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018 | 0.82 |
Over the past year, the correlation between QQQ and XLC has dropped to 0.55 - well below their long-term average of 0.82, suggesting their price drivers have been diverging.
QQQ vs. XLC - Sectors Allocation Comparison
Sectors
QQQ
XLC
Technology
Communication Services
Consumer Cyclical
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Consumer Defensive
-
Healthcare
-
Industrials
-
Utilities
-
Basic Materials
-
Energy
-
Financial Services
-
Real Estate
-
Technology
QQQ
XLC
Communication Services
QQQ
XLC
Consumer Cyclical
QQQ
XLC
-
Consumer Defensive
QQQ
XLC
-
Healthcare
QQQ
XLC
-
Industrials
QQQ
XLC
-
Utilities
QQQ
XLC
-
Basic Materials
QQQ
XLC
-
Energy
QQQ
XLC
-
Financial Services
QQQ
XLC
-
Real Estate
QQQ
XLC
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Return for Risk
QQQ vs. XLC — Risk / Return Rank
QQQ
XLC
QQQ vs. XLC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) and Communication Services Select Sector SPDR Fund (XLC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| QQQ | XLC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.41 | ||
| Sortino ratioReturn per unit of downside risk | +1.65 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.12 | +0.25 |
| Calmar ratioReturn relative to maximum drawdown | 3.01 | 0.86 | +2.15 |
| Martin ratioReturn relative to average drawdown | 11.22 | 2.73 | +8.49 |
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Drawdowns
QQQ vs. XLC - Drawdown Comparison
The maximum QQQ drawdown since its inception was -82.97%, which is greater than XLC's maximum drawdown of -46.65%. Use the drawdown chart below to compare losses from any high point for QQQ and XLC.
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Drawdown Indicators
| QQQ | XLC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -82.97% | -46.65% | -36.32% |
Max Drawdown (1Y)Largest decline over 1 year | -11.96% | -10.57% | -1.39% |
Max Drawdown (3Y)Largest decline over 3 years | -22.77% | -17.97% | -4.80% |
Max Drawdown (5Y)Largest decline over 5 years | -35.12% | -46.65% | +11.53% |
Max Drawdown (10Y)Largest decline over 10 years | -35.12% | — | — |
Current DrawdownCurrent decline from peak | -3.33% | -6.72% | +3.39% |
Average DrawdownAverage peak-to-trough decline | -32.75% | -10.58% | -22.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.20% | 3.33% | -0.13% |
Volatility
QQQ vs. XLC - Volatility Comparison
Invesco QQQ ETF (QQQ) has a higher volatility of 7.56% compared to Communication Services Select Sector SPDR Fund (XLC) at 3.57%. This indicates that QQQ's price experiences larger fluctuations and is considered to be riskier than XLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| QQQ | XLC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.56% | 3.57% | +3.99% |
Volatility (6M)Calculated over the trailing 6-month period | 13.81% | 9.65% | +4.16% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.19% | 13.28% | +3.91% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.55% | 20.68% | +1.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.38% | 22.17% | +0.21% |
QQQ vs. XLC - Expense Ratio Comparison
QQQ has a 0.18% expense ratio, which is higher than XLC's 0.13% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
QQQ vs. XLC - Dividend Comparison
QQQ's dividend yield for the trailing twelve months is around 0.39%, less than XLC's 1.25% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QQQ Invesco QQQ ETF | 0.39% | 0.45% | 0.56% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% |
XLC Communication Services Select Sector SPDR Fund | 1.25% | 1.13% | 0.99% | 0.82% | 1.10% | 0.74% | 0.68% | 0.82% | 0.64% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
QQQ and XLC have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
QQQ has higher volatility (7.56%) compared to XLC (3.57%). In terms of maximum drawdown, QQQ dropped -82.97% vs XLC's -46.65%.
On 5-year performance, QQQ leads with 16.85% vs 8.03% for XLC. On fees, XLC is cheaper at 0.13% per year. On volatility, XLC has been the lower-risk option at 3.57%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, QQQ has performed better with a 16.85% return vs 8.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLC is cheaper with a 0.13% expense ratio, compared with 0.18% for QQQ.
XLC has the higher dividend yield at 1.25%, compared with 0.39% for QQQ.
QQQ is categorized as Nasdaq-100, while XLC is Communications Equities. QQQ tracks NASDAQ-100 Index, while XLC tracks S&P Communication Services Select Sector Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.18% for QQQ and 0.13% for XLC.
QQQ currently has the higher Sharpe Ratio (2.09 vs 0.69), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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