XLG vs. QQQ

Last updated Jun 25, 2026

XLG (Invesco S&P 500 Top 50 ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - XLG is a S&P 500 fund tracking the S&P 500 Top 50 Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, XLG returned 16.88%/yr vs 22.01%/yr for QQQ. Their correlation of 0.90 suggests significant overlap in exposure. XLG charges 0.20%/yr vs 0.18%/yr for QQQ.

Performance

XLG vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P 500 Top 50 ETF (XLG) 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, XLG achieves a 1.11% return, which is significantly lower than QQQ's 15.95% return. Over the past 10 years, XLG has underperformed QQQ with an annualized return of 16.88%, while QQQ has yielded a comparatively higher 22.01% annualized return.

XLG

• 1D: -0.48%
• 1M: -5.86%
• YTD: 1.11%
• 6M: -0.07%
• 1Y: 17.97%
• 3Y*: 21.15%
• 5Y*: 14.13%
• 10Y*: 16.88%

QQQ

• 1D: -0.42%
• 1M: -0.86%
• YTD: 15.95%
• 6M: 14.16%
• 1Y: 32.28%
• 3Y*: 25.87%
• 5Y*: 15.94%
• 10Y*: 22.01%

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

XLG vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLG Invesco S&P 500 Top 50 ETF	1.11%	19.51%	33.49%	38.16%	-24.29%	30.77%	24.15%	32.04%	-3.59%	23.04%
QQQ Invesco QQQ ETF	15.95%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between XLG and QQQ is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since May 10, 2005	0.90

The correlation between XLG and QQQ has been stable across timeframes, ranging from 0.90 to 0.97 - a consistent structural relationship.

XLG vs. QQQ - Sectors Allocation Comparison

Sectors	XLG	QQQ
Technology	46.8%	58.7%
Communication Services	16.0%	14.3%
Consumer Cyclical	11.2%	11.4%
Financial Services	9.0%	0.2%
Healthcare	7.0%	3.7%
Consumer Defensive	5.2%	6.4%
Energy	2.4%	0.5%
Industrials	1.9%	2.6%
Basic Materials	0.6%	1.0%
Real Estate	-	0.1%
Utilities	-	1.2%

Return for Risk

XLG vs. QQQ — Risk / Return Rank

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

XLG

XLG Risk / Return Rank: 37
XLG Sharpe Ratio Rank: 40
XLG Sortino Ratio Rank: 37
XLG Omega Ratio Rank: 38
XLG Calmar Ratio Rank: 31
XLG Martin Ratio Rank: 36

QQQ

QQQ Risk / Return Rank: 59
QQQ Sharpe Ratio Rank: 60
QQQ Sortino Ratio Rank: 56
QQQ Omega Ratio Rank: 58
QQQ Calmar Ratio Rank: 61
QQQ Martin Ratio Rank: 61

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.

XLG vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P 500 Top 50 ETF (XLG) 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.

	XLG	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.30	1.81	-0.51
Sortino ratio: Return per unit of downside risk	1.80	2.41	-0.60
Omega ratio: Gain probability vs. loss probability	1.23	1.32	-0.09
Calmar ratio: Return relative to maximum drawdown	1.45	2.71	-1.26
Martin ratio: Return relative to average drawdown	5.15	10.01	-4.86

XLG vs. QQQ - Sharpe Ratio Comparison

The current XLG Sharpe Ratio is 1.30, which is comparable to the QQQ Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of XLG 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.

Drawdowns

XLG vs. QQQ - Drawdown Comparison

The maximum XLG drawdown since its inception was -52.39%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for XLG and QQQ.

Drawdown Indicators

	XLG	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-52.39%	-82.97%	+30.58%
Max Drawdown (1Y) Largest decline over 1 year	-12.41%	-11.96%	-0.45%
Max Drawdown (3Y) Largest decline over 3 years	-20.70%	-22.77%	+2.07%
Max Drawdown (5Y) Largest decline over 5 years	-28.02%	-35.12%	+7.10%
Max Drawdown (10Y) Largest decline over 10 years	-30.46%	-35.12%	+4.66%
Current Drawdown Current decline from peak	-7.36%	-4.66%	-2.70%
Average Drawdown Average peak-to-trough decline	-7.63%	-32.72%	+25.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.50%	3.23%	+0.27%

Volatility

XLG vs. QQQ - Volatility Comparison

The current volatility for Invesco S&P 500 Top 50 ETF (XLG) is 5.03%, while Invesco QQQ ETF (QQQ) has a volatility of 9.17%. This indicates that XLG experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLG	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.03%	9.17%	-4.14%
Volatility (6M) Calculated over the trailing 6-month period	10.69%	14.54%	-3.85%
Volatility (1Y) Calculated over the trailing 1-year period	13.95%	17.95%	-4.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.79%	22.69%	-3.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.87%	22.41%	-3.54%

XLG vs. QQQ - Expense Ratio Comparison

XLG has a 0.20% expense ratio, which is higher than QQQ's 0.18% 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%.

Dividends

XLG vs. QQQ - Dividend Comparison

XLG's dividend yield for the trailing twelve months is around 0.66%, more than QQQ's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.43%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%
XLG Invesco S&P 500 Top 50 ETF	0.66%	0.64%	0.72%	0.97%	1.34%	0.94%	1.25%	1.58%	2.00%	1.85%	2.00%	2.09%

Frequently Asked Questions

Can I hold both XLG and QQQ in my portfolio?

With a correlation of 0.92, XLG and QQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XLG or QQQ?

QQQ has higher volatility (9.17%) compared to XLG (5.03%). In terms of maximum drawdown, XLG dropped -52.39% vs QQQ's -82.97%.

Which ETF is better, XLG or QQQ?

On 10-year performance, QQQ leads with 22.01% vs 16.88% for XLG. On fees, QQQ is cheaper at 0.18% per year. On volatility, XLG has been the lower-risk option at 5.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLG or QQQ?

Over the 10-year period, QQQ has performed better with a 22.01% return vs 16.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLG or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.20% for XLG.

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

XLG has the higher dividend yield at 0.66%, compared with 0.43% for QQQ.

What is the main difference between XLG and QQQ?

XLG is categorized as S&P 500, while QQQ is Nasdaq-100. XLG tracks S&P 500 Top 50 Index, while QQQ tracks NASDAQ-100 Index. Their fees differ too: 0.20% for XLG and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (1.81 vs 1.30), 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.