XLSR vs. QQQ

Last updated Jun 4, 2026

XLSR (SPDR SSGA US Sector Rotation ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - XLSR is a Large Cap Growth Equities fund actively managed by State Street, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. XLSR is actively managed, while QQQ is passively managed. Over the past 5 years, XLSR returned 10.06%/yr vs 17.97%/yr for QQQ. Their correlation of 0.90 suggests significant overlap in exposure. XLSR charges 0.70%/yr vs 0.18%/yr for QQQ.

Performance

XLSR vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR SSGA US Sector Rotation ETF (XLSR) 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, XLSR achieves a 6.52% return, which is significantly lower than QQQ's 21.30% return.

XLSR

• 1D: -0.45%
• 1M: 5.12%
• YTD: 6.52%
• 6M: 6.27%
• 1Y: 25.83%
• 3Y*: 17.65%
• 5Y*: 10.06%
• 10Y*: —

QQQ

• 1D: -0.26%
• 1M: 10.60%
• YTD: 21.30%
• 6M: 19.66%
• 1Y: 41.82%
• 3Y*: 28.78%
• 5Y*: 17.97%
• 10Y*: 21.94%

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

XLSR vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
XLSR SPDR SSGA US Sector Rotation ETF	6.52%	17.34%	17.60%	18.95%	-15.70%	20.47%	20.23%	14.13%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	16.43%

Correlation

The correlation between XLSR 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	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (All Time) Calculated using the full available price history since Apr 4, 2019	0.90

The correlation between XLSR and QQQ has been stable across timeframes, ranging from 0.90 to 0.92 - a consistent structural relationship.

XLSR vs. QQQ - Sectors Allocation Comparison

Sectors	XLSR	QQQ
Technology	33.5%	53.8%
Healthcare	21.9%	4.2%
Communication Services	16.4%	15.8%
Industrials	13.8%	2.8%
Energy	8.1%	0.6%
Consumer Defensive	5.1%	7.7%
Financial Services	0.7%	0.2%
Consumer Cyclical	0.4%	12.3%
Basic Materials	-	1.1%
Real Estate	-	0.1%
Utilities	-	1.4%

Return for Risk

XLSR vs. QQQ — Risk / Return Rank

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

XLSR

XLSR Risk / Return Rank: 59
XLSR Sharpe Ratio Rank: 63
XLSR Sortino Ratio Rank: 63
XLSR Omega Ratio Rank: 63
XLSR Calmar Ratio Rank: 47
XLSR Martin Ratio Rank: 59

QQQ

QQQ Risk / Return Rank: 73
QQQ Sharpe Ratio Rank: 79
QQQ Sortino Ratio Rank: 75
QQQ Omega Ratio Rank: 74
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 71

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.

XLSR vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR SSGA US Sector Rotation ETF (XLSR) 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.

	XLSR	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.12	2.64	-0.52
Sortino ratio: Return per unit of downside risk	2.98	3.45	-0.46
Omega ratio: Gain probability vs. loss probability	1.39	1.45	-0.06
Calmar ratio: Return relative to maximum drawdown	2.35	3.51	-1.17
Martin ratio: Return relative to average drawdown	10.44	13.49	-3.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLSR vs. QQQ - Sharpe Ratio Comparison

The current XLSR Sharpe Ratio is 2.12, which is comparable to the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of XLSR 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

	XLSR	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.12	2.64	-0.52
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.59	0.81	-0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.99	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.41	+0.25

Drawdowns

XLSR vs. QQQ - Drawdown Comparison

The maximum XLSR drawdown since its inception was -32.94%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for XLSR and QQQ.

Drawdown Indicators

	XLSR	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-32.94%	-82.97%	+50.03%
Max Drawdown (1Y) Largest decline over 1 year	-11.06%	-11.96%	+0.90%
Max Drawdown (3Y) Largest decline over 3 years	-20.57%	-22.77%	+2.20%
Max Drawdown (5Y) Largest decline over 5 years	-23.32%	-35.12%	+11.80%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	-0.45%	-0.26%	-0.19%
Average Drawdown Average peak-to-trough decline	-5.33%	-32.79%	+27.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.48%	3.11%	-0.63%

Volatility

XLSR vs. QQQ - Volatility Comparison

The current volatility for SPDR SSGA US Sector Rotation ETF (XLSR) is 2.97%, while Invesco QQQ ETF (QQQ) has a volatility of 4.49%. This indicates that XLSR 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

	XLSR	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.97%	4.49%	-1.52%
Volatility (6M) Calculated over the trailing 6-month period	9.23%	12.10%	-2.87%
Volatility (1Y) Calculated over the trailing 1-year period	12.26%	15.94%	-3.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.08%	22.38%	-5.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.04%	22.29%	-2.25%

XLSR vs. QQQ - Expense Ratio Comparison

XLSR has a 0.70% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

XLSR vs. QQQ - Dividend Comparison

XLSR's dividend yield for the trailing twelve months is around 0.52%, more 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%
XLSR SPDR SSGA US Sector Rotation ETF	0.52%	0.58%	0.66%	1.04%	1.80%	3.44%	1.25%	0.94%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XLSR and QQQ in my portfolio?

With a correlation of 0.92, XLSR 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, XLSR or QQQ?

QQQ has higher volatility (4.49%) compared to XLSR (2.97%). In terms of maximum drawdown, XLSR dropped -32.94% vs QQQ's -82.97%.

Which ETF is better, XLSR or QQQ?

On 5-year performance, QQQ leads with 17.97% vs 10.06% for XLSR. On fees, QQQ is cheaper at 0.18% per year. On volatility, XLSR has been the lower-risk option at 2.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLSR or QQQ?

Over the 5-year period, QQQ has performed better with a 17.97% return vs 10.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLSR or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.70% for XLSR.

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

XLSR has the higher dividend yield at 0.52%, compared with 0.38% for QQQ.

What is the main difference between XLSR and QQQ?

XLSR is categorized as Large Cap Growth Equities, while QQQ is Nasdaq-100. They also come from different issuers: State Street and Invesco. Their fees differ too: 0.70% for XLSR and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.64 vs 2.12), 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.