QQQ vs. XME

Last updated Jul 21, 2026

QQQ (Invesco QQQ ETF) and XME (SPDR S&P Metals & Mining ETF) are both exchange-traded funds - QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index, while XME is a Materials fund tracking the S&P Metals & Mining Select Industry Index. Both are passively managed. Over the past 10 years, QQQ returned 20.72%/yr vs 15.15%/yr for XME. A 0.53 correlation means they provide meaningful diversification when combined. QQQ charges 0.18%/yr vs 0.35%/yr for XME.

Performance

QQQ vs. XME - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco QQQ ETF (QQQ) and SPDR S&P Metals & Mining ETF (XME). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QQQ achieves a 13.58% return, which is significantly higher than XME's -5.54% return. Over the past 10 years, QQQ has outperformed XME with an annualized return of 20.72%, while XME has yielded a comparatively lower 15.15% annualized return.

QQQ

• 1D: 0.10%
• 1M: -5.91%
• 6M: 12.30%
• YTD: 13.58%
• 1Y: 24.61%
• 3Y*: 23.54%
• 5Y*: 14.68%
• 10Y*: 20.72%
• ALL TIME*: 10.70%

XME

• 1D: -0.62%
• 1M: -16.42%
• 6M: -21.16%
• YTD: -5.54%
• 1Y: 30.48%
• 3Y*: 24.42%
• 5Y*: 19.38%
• 10Y*: 15.15%
• ALL TIME*: 5.32%

*Multi-year figures are annualized to reflect compound growth (CAGR)

QQQ vs. XME - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QQQ Invesco QQQ ETF	13.58%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%
XME SPDR S&P Metals & Mining ETF	-5.54%	83.47%	-4.54%	21.51%	13.13%	34.92%	15.95%	14.69%	-26.78%	21.17%

Correlation

The correlation between QQQ and XME is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.53

The correlation between QQQ and XME has been stable across timeframes, ranging from 0.47 to 0.56 - a consistent structural relationship.

QQQ vs. XME - Sectors Allocation Comparison

Sectors	QQQ	XME
Technology	60.9%	2.2%
Communication Services	13.1%	-
Consumer Cyclical	10.7%	-
Consumer Defensive	6.3%	0.7%
Healthcare	3.6%	-
Industrials	2.7%	0.4%
Utilities	1.1%	-
Basic Materials	1.0%	74.8%
Energy	0.5%	24.0%
Financial Services	0.2%	-
Real Estate	0.1%	-

Return for Risk

QQQ vs. XME — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

QQQ

QQQ Risk / Return Rank: 51
QQQ Sharpe Ratio Rank: 51
QQQ Sortino Ratio Rank: 47
QQQ Omega Ratio Rank: 48
QQQ Calmar Ratio Rank: 54
QQQ Martin Ratio Rank: 57

XME

XME Risk / Return Rank: 30
XME Sharpe Ratio Rank: 30
XME Sortino Ratio Rank: 31
XME Omega Ratio Rank: 30
XME Calmar Ratio Rank: 31
XME Martin Ratio Rank: 28

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

QQQ vs. XME - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco QQQ ETF (QQQ) and SPDR S&P Metals & Mining ETF (XME). 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	XME	Difference
Sharpe ratio: Return per unit of total volatility	1.32	0.84	+0.48
Sortino ratio: Return per unit of downside risk	1.83	1.31	+0.52
Omega ratio: Gain probability vs. loss probability	1.23	1.16	+0.07
Calmar ratio: Return relative to maximum drawdown	2.07	1.16	+0.91
Martin ratio: Return relative to average drawdown	7.22	2.79	+4.43

QQQ vs. XME - Sharpe Ratio Comparison

The current QQQ Sharpe Ratio is 1.32, which is higher than the XME Sharpe Ratio of 0.84. The chart below compares the historical Sharpe Ratios of QQQ and XME, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

QQQ vs. XME - Drawdown Comparison

The maximum QQQ drawdown since its inception was -82.97%, roughly equal to the maximum XME drawdown of -85.89%. Use the drawdown chart below to compare losses from any high point for QQQ and XME.

Drawdown Indicators

	QQQ	XME	Difference
Max Drawdown Largest peak-to-trough decline	-82.97%	-85.89%	+2.92%
Max Drawdown (1Y) Largest decline over 1 year	-11.96%	-26.37%	+14.41%
Max Drawdown (3Y) Largest decline over 3 years	-22.77%	-30.47%	+7.70%
Max Drawdown (5Y) Largest decline over 5 years	-35.12%	-37.27%	+2.15%
Max Drawdown (10Y) Largest decline over 10 years	-35.12%	-61.69%	+26.57%
Current Drawdown Current decline from peak	-6.61%	-26.37%	+19.76%
Average Drawdown Average peak-to-trough decline	-32.65%	-43.97%	+11.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.42%	10.94%	-7.52%

Volatility

QQQ vs. XME - Volatility Comparison

The current volatility for Invesco QQQ ETF (QQQ) is 7.41%, while SPDR S&P Metals & Mining ETF (XME) has a volatility of 8.26%. This indicates that QQQ experiences smaller price fluctuations and is considered to be less risky than XME based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QQQ	XME	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.41%	8.26%	-0.85%
Volatility (6M) Calculated over the trailing 6-month period	15.55%	28.01%	-12.46%
Volatility (1Y) Calculated over the trailing 1-year period	18.78%	36.42%	-17.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.81%	32.67%	-9.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.45%	32.86%	-10.41%

QQQ vs. XME - Expense Ratio Comparison

QQQ has a 0.18% expense ratio, which is lower than XME's 0.35% expense ratio.

Dividends

QQQ vs. XME - Dividend Comparison

QQQ's dividend yield for the trailing twelve months is around 0.44%, more than XME's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.44%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%
XME SPDR S&P Metals & Mining ETF	0.38%	0.38%	0.65%	1.00%	1.64%	0.70%	0.99%	2.43%	2.23%	1.15%	1.02%	2.61%

Frequently Asked Questions

Can I hold both QQQ and XME in my portfolio?

QQQ and XME have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QQQ or XME?

XME has higher volatility (8.26%) compared to QQQ (7.41%). In terms of maximum drawdown, QQQ dropped -82.97% vs XME's -85.89%.

Which ETF is better, QQQ or XME?

On 10-year performance, QQQ leads with 20.72% vs 15.15% for XME. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 7.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QQQ or XME?

Over the 10-year period, QQQ has performed better with a 20.72% return vs 15.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QQQ or XME?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.35% for XME.

Which ETF pays a higher dividend yield, QQQ or XME?

QQQ has the higher dividend yield at 0.44%, compared with 0.38% for XME.

What is the main difference between QQQ and XME?

QQQ is categorized as Nasdaq-100, while XME is Materials. QQQ tracks NASDAQ-100 Index, while XME tracks S&P Metals & Mining Select Industry Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 0.18% for QQQ and 0.35% for XME.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (1.32 vs 0.84), 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.