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XLI vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XLI vs. QQQ

Last updated Jun 13, 2026

XLI (Industrial Select Sector SPDR Fund) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - XLI is a Industrials Equities fund tracking the Industrial Select Sector Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, XLI returned 14.15%/yr vs 21.79%/yr for QQQ. A 0.67 correlation means they provide meaningful diversification when combined. XLI charges 0.08%/yr vs 0.18%/yr for QQQ.

Performance

XLI vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Industrial Select Sector SPDR Fund (XLI) 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, XLI achieves a 13.90% return, which is significantly lower than QQQ's 17.57% return. Over the past 10 years, XLI has underperformed QQQ with an annualized return of 14.15%, while QQQ has yielded a comparatively higher 21.79% annualized return.

XLI

1D
0.59%
1M
0.96%
YTD
13.90%
6M
13.10%
1Y
25.17%
3Y*
20.87%
5Y*
12.93%
10Y*
14.15%

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)

XLI vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XLI
Industrial Select Sector SPDR Fund		13.90%19.35%17.31%18.13%-5.57%21.08%10.91%29.08%-13.25%23.98%
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 XLI and QQQ is 0.54, 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

0.54

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

0.59

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

0.65

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

0.61

Correlation (All Time)
Calculated using the full available price history since Mar 10, 1999

0.67

The correlation between XLI and QQQ shifts across timeframes, from 0.54 (1 year) to 0.67 (all time), reflecting how their relationship changes across market environments.

XLI vs. QQQ - Sectors Allocation Comparison

Sectors
XLI
QQQ

Industrials

90.7%
2.8%

Utilities

4.8%
1.4%

Technology

4.0%
53.8%

Consumer Cyclical

0.5%
12.3%

Basic Materials

-

1.1%

Communication Services

-

15.8%

Consumer Defensive

-

7.7%

Energy

-

0.6%

Financial Services

-

0.2%

Healthcare

-

4.2%

Real Estate

-

0.1%

Industrials

XLI
90.7%
QQQ
2.8%

Utilities

XLI
4.8%
QQQ
1.4%

Technology

XLI
4.0%
QQQ
53.8%

Consumer Cyclical

XLI
0.5%
QQQ
12.3%

Basic Materials

XLI

-

QQQ
1.1%

Communication Services

XLI

-

QQQ
15.8%

Consumer Defensive

XLI

-

QQQ
7.7%

Energy

XLI

-

QQQ
0.6%

Financial Services

XLI

-

QQQ
0.2%

Healthcare

XLI

-

QQQ
4.2%

Real Estate

XLI

-

QQQ
0.1%

Compare stocks, funds, or ETFs

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Industrial Select Sector SPDR Fund

Invesco QQQ ETF

Often compared with XLI:
XLI vs. VISXLI vs. PAVEXLI vs. XLKXLI vs. SPYXLI vs. FIDUXLI vs. ITAXLI vs. AIRR
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. QQQI

Return for Risk

XLI vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XLI
XLI Risk / Return Rank: 4848
Overall Rank
XLI Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
XLI Sortino Ratio Rank: 5050
Sortino Ratio Rank
XLI Omega Ratio Rank: 4646
Omega Ratio Rank
XLI Calmar Ratio Rank: 4545
Calmar Ratio Rank
XLI Martin Ratio Rank: 5252
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.

XLI vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Industrial Select Sector SPDR Fund (XLI) 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.

XLIQQQDifference
Sharpe ratioReturn per unit of total volatility
1.50
2.09

-0.59

Sortino ratioReturn per unit of downside risk
2.17
2.73

-0.56

Omega ratioGain probability vs. loss probability

1.26

1.37

-0.11

Calmar ratioReturn relative to maximum drawdown

1.98

3.01

-1.02

Martin ratioReturn relative to average drawdown

7.82

11.22

-3.41

XLI vs. QQQ - Sharpe Ratio Comparison

The current XLI Sharpe Ratio is 1.50, which is comparable to the QQQ Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of XLI 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

XLI vs. QQQ - Drawdown Comparison

The maximum XLI drawdown since its inception was -62.26%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for XLI and QQQ.

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Drawdown Indicators

XLIQQQDifference

Max Drawdown

Largest peak-to-trough decline

-62.26%

-82.97%

+20.71%

Max Drawdown (1Y)

Largest decline over 1 year

-12.21%

-11.96%

-0.25%

Max Drawdown (3Y)

Largest decline over 3 years

-18.49%

-22.77%

+4.28%

Max Drawdown (5Y)

Largest decline over 5 years

-21.64%

-35.12%

+13.48%

Max Drawdown (10Y)

Largest decline over 10 years

-42.33%

-35.12%

-7.21%

Current Drawdown

Current decline from peak

-1.24%

-3.33%

+2.09%

Average Drawdown

Average peak-to-trough decline

-9.20%

-32.75%

+23.55%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.09%

3.20%

-0.11%

Volatility

XLI vs. QQQ - Volatility Comparison

The current volatility for Industrial Select Sector SPDR Fund (XLI) is 6.22%, while Invesco QQQ ETF (QQQ) has a volatility of 7.56%. This indicates that XLI 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.

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Volatility by Period

XLIQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.22%

7.56%

-1.34%

Volatility (6M)

Calculated over the trailing 6-month period

13.59%

13.81%

-0.22%

Volatility (1Y)

Calculated over the trailing 1-year period

16.17%

17.19%

-1.02%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.55%

22.55%

-5.00%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.04%

22.38%

-2.34%

XLI vs. QQQ - Expense Ratio Comparison

XLI has a 0.08% expense ratio, which is lower than QQQ's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XLI vs. QQQ - Dividend Comparison

XLI's dividend yield for the trailing twelve months is around 1.16%, more 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%
XLI
Industrial Select Sector SPDR Fund		1.16%1.29%1.44%1.63%1.63%1.25%1.55%1.94%2.15%1.77%2.07%2.15%

Frequently Asked Questions

XLI and QQQ have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QQQ has higher volatility (7.56%) compared to XLI (6.22%). In terms of maximum drawdown, XLI dropped -62.26% vs QQQ's -82.97%.

On 10-year performance, QQQ leads with 21.79% vs 14.15% for XLI. On fees, XLI is cheaper at 0.08% per year. On volatility, XLI has been the lower-risk option at 6.22%. 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 14.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

XLI is cheaper with a 0.08% expense ratio, compared with 0.18% for QQQ.

XLI has the higher dividend yield at 1.16%, compared with 0.39% for QQQ.

XLI is categorized as Industrials Equities, while QQQ is Nasdaq-100. XLI tracks Industrial Select Sector Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: State Street and Invesco. Their fees differ too: 0.08% for XLI and 0.18% for QQQ.

QQQ 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.

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