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XBI vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XBI vs. QQQ

Last updated Jun 14, 2026

XBI (SPDR S&P Biotech ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - XBI is a Health & Biotech Equities fund tracking the S&P Biotechnology Select Industry Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, XBI returned 9.55%/yr vs 21.79%/yr for QQQ. A 0.62 correlation means they provide meaningful diversification when combined. XBI charges 0.35%/yr vs 0.18%/yr for QQQ.

Performance

XBI vs. QQQ - Performance Comparison

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

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Returns By Period

In the year-to-date period, XBI achieves a 9.73% return, which is significantly lower than QQQ's 17.57% return. Over the past 10 years, XBI has underperformed QQQ with an annualized return of 9.55%, while QQQ has yielded a comparatively higher 21.79% annualized return.

XBI

1D
0.79%
1M
-0.79%
YTD
9.73%
6M
9.02%
1Y
60.62%
3Y*
14.23%
5Y*
-0.20%
10Y*
9.55%

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

XBI vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XBI
SPDR S&P Biotech ETF		9.73%35.89%1.01%7.60%-25.87%-20.45%48.33%32.56%-15.28%43.77%
QQQ
Invesco QQQ ETF		17.57%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%32.66%

Correlation

The correlation between XBI and QQQ is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.42

Correlation (3Y)
Calculated over the trailing 3-year period

0.46

Correlation (5Y)
Calculated over the trailing 5-year period

0.53

Correlation (10Y)
Calculated over the trailing 10-year period

0.56

Correlation (All Time)
Calculated using the full available price history since Feb 6, 2006

0.62

The correlation between XBI and QQQ shifts across timeframes, from 0.42 (1 year) to 0.62 (all time), reflecting how their relationship changes across market environments.

XBI vs. QQQ - Sectors Allocation Comparison

Sectors
XBI
QQQ

Healthcare

99.7%
3.7%

Financial Services

0.3%
0.2%

Basic Materials

0.2%
1.0%

Communication Services

-

14.3%

Consumer Cyclical

-

11.4%

Consumer Defensive

-

6.4%

Energy

-

0.5%

Industrials

-

2.6%

Real Estate

-

0.1%

Technology

-

58.7%

Utilities

-

1.2%

Healthcare

XBI
99.7%
QQQ
3.7%

Financial Services

XBI
0.3%
QQQ
0.2%

Basic Materials

XBI
0.2%
QQQ
1.0%

Communication Services

XBI

-

QQQ
14.3%

Consumer Cyclical

XBI

-

QQQ
11.4%

Consumer Defensive

XBI

-

QQQ
6.4%

Energy

XBI

-

QQQ
0.5%

Industrials

XBI

-

QQQ
2.6%

Real Estate

XBI

-

QQQ
0.1%

Technology

XBI

-

QQQ
58.7%

Utilities

XBI

-

QQQ
1.2%

Compare stocks, funds, or ETFs

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SPDR S&P Biotech ETF

Invesco QQQ ETF

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Often compared with QQQ:
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Return for Risk

XBI vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XBI
XBI Risk / Return Rank: 8484
Overall Rank
XBI Sharpe Ratio Rank: 8282
Sharpe Ratio Rank
XBI Sortino Ratio Rank: 8181
Sortino Ratio Rank
XBI Omega Ratio Rank: 7373
Omega Ratio Rank
XBI Calmar Ratio Rank: 9494
Calmar Ratio Rank
XBI Martin Ratio Rank: 9090
Martin Ratio Rank
QQQ
QQQ Risk / Return Rank: 7171
Overall Rank
QQQ Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 7070
Sortino Ratio Rank
QQQ Omega Ratio Rank: 7373
Omega Ratio Rank
QQQ Calmar Ratio Rank: 6969
Calmar Ratio Rank
QQQ Martin Ratio Rank: 7070
Martin Ratio Rank
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.

XBI vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Biotech ETF (XBI) and Invesco QQQ ETF (QQQ). 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.

XBIQQQDifference
Sharpe ratioReturn per unit of total volatility
2.28
2.09

+0.19

Sortino ratioReturn per unit of downside risk
3.11
2.73

+0.38

Omega ratioGain probability vs. loss probability

1.37

1.37

0.00

Calmar ratioReturn relative to maximum drawdown

6.12

3.01

+3.11

Martin ratioReturn relative to average drawdown

18.07

11.22

+6.85

XBI vs. QQQ - Sharpe Ratio Comparison

The current XBI Sharpe Ratio is 2.28, which is comparable to the QQQ Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of XBI and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

XBI vs. QQQ - Drawdown Comparison

The maximum XBI drawdown since its inception was -63.89%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for XBI and QQQ.

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Drawdown Indicators

XBIQQQDifference

Max Drawdown

Largest peak-to-trough decline

-63.89%

-82.97%

+19.08%

Max Drawdown (1Y)

Largest decline over 1 year

-9.72%

-11.96%

+2.24%

Max Drawdown (3Y)

Largest decline over 3 years

-32.99%

-22.77%

-10.22%

Max Drawdown (5Y)

Largest decline over 5 years

-54.71%

-35.12%

-19.59%

Max Drawdown (10Y)

Largest decline over 10 years

-63.89%

-35.12%

-28.77%

Current Drawdown

Current decline from peak

-22.67%

-3.33%

-19.34%

Average Drawdown

Average peak-to-trough decline

-20.93%

-32.75%

+11.82%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.30%

3.20%

+0.10%

Volatility

XBI vs. QQQ - Volatility Comparison

SPDR S&P Biotech ETF (XBI) has a higher volatility of 10.39% compared to Invesco QQQ ETF (QQQ) at 7.56%. This indicates that XBI's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

XBIQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

10.39%

7.56%

+2.83%

Volatility (6M)

Calculated over the trailing 6-month period

20.76%

13.81%

+6.95%

Volatility (1Y)

Calculated over the trailing 1-year period

26.09%

17.19%

+8.90%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

32.21%

22.55%

+9.66%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

32.01%

22.38%

+9.63%

XBI vs. QQQ - Expense Ratio Comparison

XBI has a 0.35% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

XBI vs. QQQ - Dividend Comparison

XBI's dividend yield for the trailing twelve months is around 0.33%, less than QQQ's 0.39% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
XBI
SPDR S&P Biotech ETF		0.33%0.37%0.15%0.02%0.00%0.04%0.20%0.00%0.28%0.24%0.26%0.61%

Frequently Asked Questions

XBI and QQQ have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

XBI has higher volatility (10.39%) compared to QQQ (7.56%). In terms of maximum drawdown, XBI dropped -63.89% vs QQQ's -82.97%.

On 10-year performance, QQQ leads with 21.79% vs 9.55% for XBI. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 7.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QQQ has performed better with a 21.79% return vs 9.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

QQQ has the higher dividend yield at 0.39%, compared with 0.33% for XBI.

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

XBI currently has the higher Sharpe Ratio (2.28 vs 2.09), 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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