QQQ vs. XLK
Compare and contrast key facts about Invesco QQQ (QQQ) and Technology Select Sector SPDR Fund (XLK).
QQQ and XLK are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. XLK is a passively managed fund by State Street that tracks the performance of the Technology Select Sector Index. It was launched on Dec 16, 1998. Both QQQ and XLK are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: QQQ or XLK.
Key characteristics
| QQQ | XLK | |
|---|---|---|
| YTD Return | 21.27% | 20.59% |
| 1Y Return | 38.31% | 39.50% |
| 3Y Return (Ann) | 10.36% | 14.30% |
| 5Y Return (Ann) | 21.70% | 24.54% |
| 10Y Return (Ann) | 18.70% | 21.16% |
| Sharpe Ratio | 2.12 | 1.80 |
| Sortino Ratio | 2.77 | 2.35 |
| Omega Ratio | 1.37 | 1.32 |
| Calmar Ratio | 2.68 | 2.28 |
| Martin Ratio | 9.95 | 7.99 |
| Ulcer Index | 3.72% | 4.85% |
| Daily Std Dev | 17.50% | 21.53% |
| Max Drawdown | -82.98% | -82.05% |
| Current Drawdown | -1.55% | -2.67% |
Correlation
The correlation between QQQ and XLK is 0.94, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
QQQ vs. XLK - Performance Comparison
The year-to-date returns for both stocks are quite close, with QQQ having a 21.27% return and XLK slightly lower at 20.59%. Over the past 10 years, QQQ has underperformed XLK with an annualized return of 18.70%, while XLK has yielded a comparatively higher 21.16% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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QQQ vs. XLK - Expense Ratio Comparison
QQQ has a 0.20% expense ratio, which is higher than XLK'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%.
Risk-Adjusted Performance
QQQ vs. XLK - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ (QQQ) and Technology Select Sector SPDR Fund (XLK). 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.
Dividends
QQQ vs. XLK - Dividend Comparison
QQQ's dividend yield for the trailing twelve months is around 0.61%, less than XLK's 0.68% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QQQ Invesco QQQ | 0.61% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
XLK Technology Select Sector SPDR Fund | 0.68% | 0.76% | 1.04% | 0.65% | 0.92% | 1.16% | 1.60% | 1.37% | 1.74% | 1.79% | 1.75% | 1.70% |
Drawdowns
QQQ vs. XLK - Drawdown Comparison
The maximum QQQ drawdown since its inception was -82.98%, roughly equal to the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for QQQ and XLK. For additional features, visit the drawdowns tool.
Volatility
QQQ vs. XLK - Volatility Comparison
The current volatility for Invesco QQQ (QQQ) is 3.45%, while Technology Select Sector SPDR Fund (XLK) has a volatility of 4.92%. This indicates that QQQ experiences smaller price fluctuations and is considered to be less risky than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.