XLK vs. QQQ
Compare and contrast key facts about Technology Select Sector SPDR Fund (XLK) and Invesco QQQ (QQQ).
XLK and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLK is a passively managed fund by State Street that tracks the performance of the Technology Select Sector Index. It was launched on Dec 16, 1998. 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 XLK 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: XLK or QQQ.
Performance
XLK vs. QQQ - Performance Comparison
Returns By Period
In the year-to-date period, XLK achieves a 20.71% return, which is significantly lower than QQQ's 23.40% return. Over the past 10 years, XLK has outperformed QQQ with an annualized return of 20.26%, while QQQ has yielded a comparatively lower 18.08% annualized return.
XLK
20.71%
-0.37%
7.81%
26.58%
22.92%
20.26%
QQQ
23.40%
1.56%
10.75%
30.41%
20.90%
18.08%
Key characteristics
| XLK | QQQ | |
|---|---|---|
| Sharpe Ratio | 1.18 | 1.71 |
| Sortino Ratio | 1.64 | 2.29 |
| Omega Ratio | 1.22 | 1.31 |
| Calmar Ratio | 1.51 | 2.19 |
| Martin Ratio | 5.19 | 7.95 |
| Ulcer Index | 4.92% | 3.73% |
| Daily Std Dev | 21.69% | 17.38% |
| Max Drawdown | -82.05% | -82.98% |
| Current Drawdown | -2.65% | -2.13% |
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
XLK vs. QQQ - Expense Ratio Comparison
XLK has a 0.13% expense ratio, which is lower than QQQ's 0.20% 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%.
Correlation
The correlation between XLK and QQQ is 0.94, 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.
Risk-Adjusted Performance
XLK vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Technology Select Sector SPDR Fund (XLK) 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
XLK vs. QQQ - Dividend Comparison
XLK's dividend yield for the trailing twelve months is around 0.67%, more than QQQ's 0.60% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLK Technology Select Sector SPDR Fund | 0.67% | 0.76% | 1.04% | 0.65% | 0.92% | 1.16% | 1.60% | 1.37% | 1.74% | 1.79% | 1.75% | 1.70% |
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% | 1.02% |
Drawdowns
XLK vs. QQQ - Drawdown Comparison
The maximum XLK drawdown since its inception was -82.05%, roughly equal to the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for XLK and QQQ. For additional features, visit the drawdowns tool.
Volatility
XLK vs. QQQ - Volatility Comparison
Technology Select Sector SPDR Fund (XLK) has a higher volatility of 6.36% compared to Invesco QQQ (QQQ) at 5.66%. This indicates that XLK'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.