XHE vs. QQQ

Last updated Jun 3, 2026

XHE (SPDR S&P Health Care Equipment ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - XHE is a Health & Biotech Equities fund tracking the S&P Health Care Equipment Select Industry Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, XHE returned 5.72%/yr vs 21.97%/yr for QQQ. A 0.64 correlation means they provide meaningful diversification when combined. XHE charges 0.35%/yr vs 0.18%/yr for QQQ.

Performance

XHE vs. QQQ - Performance Comparison

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

Returns By Period

In the year-to-date period, XHE achieves a -11.59% return, which is significantly lower than QQQ's 21.62% return. Over the past 10 years, XHE has underperformed QQQ with an annualized return of 5.72%, while QQQ has yielded a comparatively higher 21.97% annualized return.

XHE

• 1D: -0.95%
• 1M: -4.49%
• YTD: -11.59%
• 6M: -10.52%
• 1Y: -2.63%
• 3Y*: -6.57%
• 5Y*: -8.01%
• 10Y*: 5.72%

QQQ

• 1D: 0.46%
• 1M: 10.68%
• YTD: 21.62%
• 6M: 20.27%
• 1Y: 43.30%
• 3Y*: 28.89%
• 5Y*: 18.43%
• 10Y*: 21.97%

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

XHE vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XHE SPDR S&P Health Care Equipment ETF	-11.59%	-0.23%	5.08%	-6.23%	-23.34%	3.04%	32.91%	22.30%	8.90%	30.51%
QQQ Invesco QQQ ETF	21.62%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between XHE and QQQ is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Jan 28, 2011	0.64

Over the past year, the correlation between XHE and QQQ has dropped to 0.41 - well below their long-term average of 0.64, suggesting their price drivers have been diverging.

XHE vs. QQQ - Sectors Allocation Comparison

Sectors	XHE	QQQ
Healthcare	98.4%	4.2%
Industrials	1.7%	2.8%
Financial Services	1.6%	0.2%
Communication Services	1.4%	15.8%
Basic Materials	-	1.1%
Consumer Cyclical	-	12.3%
Consumer Defensive	-	7.7%
Energy	-	0.6%
Real Estate	-	0.1%
Technology	-	53.8%
Utilities	-	1.4%

Return for Risk

XHE vs. QQQ — Risk / Return Rank

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

XHE

XHE Risk / Return Rank: 7
XHE Sharpe Ratio Rank: 7
XHE Sortino Ratio Rank: 7
XHE Omega Ratio Rank: 7
XHE Calmar Ratio Rank: 7
XHE Martin Ratio Rank: 6

QQQ

QQQ Risk / Return Rank: 77
QQQ Sharpe Ratio Rank: 83
QQQ Sortino Ratio Rank: 78
QQQ Omega Ratio Rank: 77
QQQ Calmar Ratio Rank: 73
QQQ Martin Ratio Rank: 74

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.

XHE vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Health Care Equipment ETF (XHE) 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.

	XHE	QQQ	Difference
Sharpe ratio Return per unit of total volatility	-0.12	2.73	-2.85
Sortino ratio Return per unit of downside risk	-0.03	3.55	-3.57
Omega ratio Gain probability vs. loss probability	1.00	1.47	-0.47
Calmar ratio Return relative to maximum drawdown	-0.21	3.71	-3.92
Martin ratio Return relative to average drawdown	-0.48	14.30	-14.78
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XHE vs. QQQ - Sharpe Ratio Comparison

The current XHE Sharpe Ratio is -0.12, which is lower than the QQQ Sharpe Ratio of 2.73. The chart below compares the historical Sharpe Ratios of XHE 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.

Sharpe Ratios by Period

	XHE	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.12	2.73	-2.85
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.33	0.83	-1.16
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.25	0.99	-0.74
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.41	-0.01

Drawdowns

XHE vs. QQQ - Drawdown Comparison

The maximum XHE drawdown since its inception was -49.92%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for XHE and QQQ.

Drawdown Indicators

	XHE	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-49.92%	-82.97%	+33.05%
Max Drawdown (1Y) Largest decline over 1 year	-18.29%	-11.96%	-6.33%
Max Drawdown (3Y) Largest decline over 3 years	-32.62%	-22.77%	-9.85%
Max Drawdown (5Y) Largest decline over 5 years	-49.92%	-35.12%	-14.80%
Max Drawdown (10Y) Largest decline over 10 years	-49.92%	-35.12%	-14.80%
Current Drawdown Current decline from peak	-41.39%	0.00%	-41.39%
Average Drawdown Average peak-to-trough decline	-13.26%	-32.79%	+19.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.00%	3.11%	+4.89%

Volatility

XHE vs. QQQ - Volatility Comparison

SPDR S&P Health Care Equipment ETF (XHE) has a higher volatility of 5.82% compared to Invesco QQQ ETF (QQQ) at 4.48%. This indicates that XHE'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.

Volatility by Period

	XHE	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.82%	4.48%	+1.34%
Volatility (6M) Calculated over the trailing 6-month period	15.38%	12.11%	+3.27%
Volatility (1Y) Calculated over the trailing 1-year period	21.39%	15.95%	+5.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.40%	22.39%	+2.01%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.93%	22.30%	+0.63%

XHE vs. QQQ - Expense Ratio Comparison

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

Dividends

XHE vs. QQQ - Dividend Comparison

XHE's dividend yield for the trailing twelve months is around 0.09%, less than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.38%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%
XHE SPDR S&P Health Care Equipment ETF	0.09%	0.08%	0.04%	0.03%	0.04%	0.00%	0.00%	0.05%	0.09%	0.78%	0.17%	7.22%

Frequently Asked Questions

Can I hold both XHE and QQQ in my portfolio?

XHE and QQQ have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XHE or QQQ?

XHE has higher volatility (5.82%) compared to QQQ (4.48%). In terms of maximum drawdown, XHE dropped -49.92% vs QQQ's -82.97%.

Which ETF is better, XHE or QQQ?

On 10-year performance, QQQ leads with 21.97% vs 5.72% for XHE. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 4.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XHE or QQQ?

Over the 10-year period, QQQ has performed better with a 21.97% return vs 5.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XHE or QQQ?

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

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

QQQ has the higher dividend yield at 0.38%, compared with 0.09% for XHE.

What is the main difference between XHE and QQQ?

XHE is categorized as Health & Biotech Equities, while QQQ is Nasdaq-100. XHE tracks S&P Health Care Equipment 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 XHE and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.73 vs -0.12), 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.