XAR vs. TQQQ

Last updated Jun 14, 2026

XAR (SPDR S&P Aerospace & Defense ETF) and TQQQ (ProShares UltraPro QQQ) are both exchange-traded funds - XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index, while TQQQ is a Leveraged Equities fund tracking the NASDAQ-100 Index (300%). Both are passively managed. Over the past 10 years, XAR returned 18.45%/yr vs 44.55%/yr for TQQQ. A 0.55 correlation means they provide meaningful diversification when combined. XAR charges 0.35%/yr vs 0.95%/yr for TQQQ.

Performance

XAR vs. TQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Aerospace & Defense ETF (XAR) and ProShares UltraPro QQQ (TQQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XAR achieves a 16.10% return, which is significantly lower than TQQQ's 47.28% return. Over the past 10 years, XAR has underperformed TQQQ with an annualized return of 18.45%, while TQQQ has yielded a comparatively higher 44.55% annualized return.

XAR

• 1D: -1.55%
• 1M: 7.38%
• YTD: 16.10%
• 6M: 18.39%
• 1Y: 42.07%
• 3Y*: 33.32%
• 5Y*: 16.58%
• 10Y*: 18.45%

TQQQ

• 1D: 1.99%
• 1M: 2.89%
• YTD: 47.28%
• 6M: 47.23%
• 1Y: 114.36%
• 3Y*: 59.79%
• 5Y*: 24.34%
• 10Y*: 44.55%

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

XAR vs. TQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XAR SPDR S&P Aerospace & Defense ETF	16.10%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-4.58%	33.00%
TQQQ ProShares UltraPro QQQ	47.28%	34.35%	58.27%	198.04%	-79.09%	82.98%	110.05%	133.84%	-19.79%	118.06%

Correlation

The correlation between XAR and TQQQ is 0.51, 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	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.55

The correlation between XAR and TQQQ has been stable across timeframes, ranging from 0.51 to 0.58 - a consistent structural relationship.

XAR vs. TQQQ - Sectors Allocation Comparison

Sectors	XAR	TQQQ
Industrials	99.1%	2.8%
Technology	0.8%	53.8%
Basic Materials	-	1.1%
Communication Services	-	15.8%
Consumer Cyclical	-	12.3%
Consumer Defensive	-	7.7%
Energy	-	0.6%
Financial Services	-	0.2%
Healthcare	-	4.2%
Real Estate	-	0.1%
Utilities	-	1.4%

Return for Risk

XAR vs. TQQQ — Risk / Return Rank

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

XAR

XAR Risk / Return Rank: 49
XAR Sharpe Ratio Rank: 49
XAR Sortino Ratio Rank: 51
XAR Omega Ratio Rank: 44
XAR Calmar Ratio Rank: 56
XAR Martin Ratio Rank: 48

TQQQ

TQQQ Risk / Return Rank: 64
TQQQ Sharpe Ratio Rank: 75
TQQQ Sortino Ratio Rank: 59
TQQQ Omega Ratio Rank: 62
TQQQ Calmar Ratio Rank: 66
TQQQ Martin Ratio Rank: 59

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.

XAR vs. TQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Aerospace & Defense ETF (XAR) and ProShares UltraPro QQQ (TQQQ). 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.

	XAR	TQQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.50	2.09	-0.58
Sortino ratio: Return per unit of downside risk	2.20	2.42	-0.22
Omega ratio: Gain probability vs. loss probability	1.25	1.32	-0.07
Calmar ratio: Return relative to maximum drawdown	2.43	2.89	-0.46
Martin ratio: Return relative to average drawdown	6.81	9.26	-2.45

XAR vs. TQQQ - Sharpe Ratio Comparison

The current XAR Sharpe Ratio is 1.50, which is comparable to the TQQQ Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of XAR and TQQQ, 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

XAR vs. TQQQ - Drawdown Comparison

The maximum XAR drawdown since its inception was -46.37%, smaller than the maximum TQQQ drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for XAR and TQQQ.

Drawdown Indicators

	XAR	TQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-46.37%	-81.66%	+35.29%
Max Drawdown (1Y) Largest decline over 1 year	-17.22%	-36.97%	+19.75%
Max Drawdown (3Y) Largest decline over 3 years	-19.73%	-58.04%	+38.31%
Max Drawdown (5Y) Largest decline over 5 years	-32.40%	-81.66%	+49.26%
Max Drawdown (10Y) Largest decline over 10 years	-46.37%	-81.66%	+35.29%
Current Drawdown Current decline from peak	-4.32%	-11.12%	+6.80%
Average Drawdown Average peak-to-trough decline	-6.78%	-18.51%	+11.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.13%	11.52%	-5.39%

Volatility

XAR vs. TQQQ - Volatility Comparison

The current volatility for SPDR S&P Aerospace & Defense ETF (XAR) is 11.46%, while ProShares UltraPro QQQ (TQQQ) has a volatility of 22.79%. This indicates that XAR experiences smaller price fluctuations and is considered to be less risky than TQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XAR	TQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.46%	22.79%	-11.33%
Volatility (6M) Calculated over the trailing 6-month period	23.56%	41.26%	-17.70%
Volatility (1Y) Calculated over the trailing 1-year period	27.85%	51.24%	-23.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.66%	67.02%	-43.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.74%	66.22%	-41.48%

XAR vs. TQQQ - Expense Ratio Comparison

XAR has a 0.35% expense ratio, which is lower than TQQQ's 0.95% expense ratio.

Dividends

XAR vs. TQQQ - Dividend Comparison

XAR's dividend yield for the trailing twelve months is around 0.31%, less than TQQQ's 0.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TQQQ ProShares UltraPro QQQ	0.41%	0.65%	1.27%	1.26%	0.57%	0.00%	0.00%	0.06%	0.11%	0.00%	0.00%	0.01%
XAR SPDR S&P Aerospace & Defense ETF	0.31%	0.40%	0.66%	0.54%	0.50%	0.83%	0.63%	0.75%	1.19%	0.76%	1.09%	2.31%

Frequently Asked Questions

Can I hold both XAR and TQQQ in my portfolio?

XAR and TQQQ have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XAR or TQQQ?

TQQQ has higher volatility (22.79%) compared to XAR (11.46%). In terms of maximum drawdown, XAR dropped -46.37% vs TQQQ's -81.66%.

Which ETF is better, XAR or TQQQ?

On 10-year performance, TQQQ leads with 44.55% vs 18.45% for XAR. On fees, XAR is cheaper at 0.35% per year. On volatility, XAR has been the lower-risk option at 11.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XAR or TQQQ?

Over the 10-year period, TQQQ has performed better with a 44.55% return vs 18.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XAR or TQQQ?

XAR is cheaper with a 0.35% expense ratio, compared with 0.95% for TQQQ.

Which ETF pays a higher dividend yield, XAR or TQQQ?

TQQQ has the higher dividend yield at 0.41%, compared with 0.31% for XAR.

What is the main difference between XAR and TQQQ?

XAR is categorized as Aerospace & Defense, while TQQQ is Leveraged Equities. XAR tracks S&P Aerospace & Defense Select Industry Index, while TQQQ tracks NASDAQ-100 Index (300%). They also come from different issuers: State Street and ProShares. Their fees differ too: 0.35% for XAR and 0.95% for TQQQ.

Which has better risk-adjusted returns?

TQQQ currently has the higher Sharpe Ratio (2.09 vs 1.50), 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.