XLG vs. QQQ
Compare and contrast key facts about Invesco S&P 500® Top 50 ETF (XLG) and Invesco QQQ (QQQ).
XLG and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLG is a passively managed fund by Invesco that tracks the performance of the Russell Top 50 Index. It was launched on May 10, 2005. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both XLG and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLG or QQQ.
Key characteristics
| XLG | QQQ | |
|---|---|---|
| YTD Return | 21.80% | 17.40% |
| 1Y Return | 35.92% | 34.95% |
| 3Y Return (Ann) | 13.56% | 11.89% |
| 5Y Return (Ann) | 18.46% | 21.66% |
| 10Y Return (Ann) | 14.86% | 18.74% |
| Sharpe Ratio | 2.60 | 2.12 |
| Daily Std Dev | 13.17% | 15.65% |
| Max Drawdown | -52.38% | -82.98% |
| Current Drawdown | -0.60% | -1.04% |
Correlation
The correlation between XLG and QQQ is 0.90, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
XLG vs. QQQ - Performance Comparison
In the year-to-date period, XLG achieves a 21.80% return, which is significantly higher than QQQ's 17.40% return. Over the past 10 years, XLG has underperformed QQQ with an annualized return of 14.86%, while QQQ has yielded a comparatively higher 18.74% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XLG vs. QQQ - Expense Ratio Comparison
Both XLG and QQQ have an expense ratio of 0.20%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
XLG vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco S&P 500® Top 50 ETF (XLG) and Invesco QQQ (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.
Dividends
XLG vs. QQQ - Dividend Comparison
XLG's dividend yield for the trailing twelve months is around 0.78%, more than QQQ's 0.60% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLG Invesco S&P 500® Top 50 ETF | 0.78% | 0.97% | 1.34% | 0.93% | 1.25% | 1.58% | 2.00% | 1.86% | 1.99% | 2.09% | 1.97% | 1.98% |
QQQ Invesco QQQ | 0.60% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
XLG vs. QQQ - Drawdown Comparison
The maximum XLG drawdown since its inception was -52.38%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for XLG and QQQ. For additional features, visit the drawdowns tool.
Volatility
XLG vs. QQQ - Volatility Comparison
The current volatility for Invesco S&P 500® Top 50 ETF (XLG) is 3.07%, while Invesco QQQ (QQQ) has a volatility of 3.72%. 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.