XRT vs. QQQ

Last updated Aug 4, 2026

XRT (SPDR S&P Retail ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - XRT is a Consumer Discretionary Equities fund tracking the S&P Retail Select Industry Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, XRT returned 9.00%/yr vs 20.46%/yr for QQQ. Their 0.64 correlation means they have sometimes moved together and sometimes differently. XRT charges 0.35%/yr vs 0.18%/yr for QQQ.

Performance

XRT vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Retail ETF (XRT) 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, XRT achieves a 7.76% return, which is significantly lower than QQQ's 14.23% return. Over the past 10 years, XRT has underperformed QQQ with an annualized return of 9.00%, while QQQ has yielded a comparatively higher 20.46% annualized return.

XRT

• 1D: 1.87%
• 1M: 3.86%
• 6M: 4.50%
• YTD: 7.76%
• 1Y: 18.43%
• 3Y*: 12.43%
• 5Y*: 1.12%
• 10Y*: 9.00%
• ALL TIME*: 9.68%

QQQ

• 1D: 1.76%
• 1M: -1.76%
• 6M: 12.07%
• YTD: 14.23%
• 1Y: 27.00%
• 3Y*: 24.17%
• 5Y*: 14.45%
• 10Y*: 20.46%
• ALL TIME*: 10.70%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
QQQ Invesco QQQ ETF	$31.40B	$28.17B	$31.69B
XRT SPDR S&P Retail ETF	$433.01M	$377.95M	$454.29M

XRT vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XRT SPDR S&P Retail ETF	7.76%	8.07%	11.78%	21.53%	-31.64%	42.60%	41.91%	14.12%	-8.04%	4.22%
QQQ Invesco QQQ ETF	14.23%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between XRT and QQQ is 0.40, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.40
Correlation (3Y) Balances recent behavior with more history.	0.49
Correlation (5Y) Shows whether the relationship held over a longer period.	0.61
Correlation (10Y) Provides a long-term view across more market conditions.	0.54
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.64

Over the past year, the correlation between XRT and QQQ has dropped to 0.40 - well below their long-term average of 0.64, suggesting their price drivers have been diverging.

XRT vs. QQQ - Sectors Allocation Comparison

Sectors	XRT	QQQ
Consumer Cyclical	75.2%	10.7%
Consumer Defensive	18.7%	6.3%
Technology	2.7%	60.9%
Communication Services	1.8%	13.1%
Healthcare	1.6%	3.6%
Energy	1.3%	0.5%
Basic Materials	-	1.0%
Financial Services	-	0.2%
Industrials	-	2.7%
Real Estate	-	0.1%
Utilities	-	1.1%

Return for Risk

XRT vs. QQQ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

XRT

XRT Risk / Return Rank: 35
XRT Sharpe Ratio Rank: 35
XRT Sortino Ratio Rank: 37
XRT Omega Ratio Rank: 33
XRT Calmar Ratio Rank: 38
XRT Martin Ratio Rank: 33

QQQ

QQQ Risk / Return Rank: 58
QQQ Sharpe Ratio Rank: 58
QQQ Sortino Ratio Rank: 55
QQQ Omega Ratio Rank: 55
QQQ Calmar Ratio Rank: 64
QQQ Martin Ratio Rank: 59

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

XRT vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Retail ETF (XRT) 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.

	XRT	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	0.89	1.40	-0.52
Sortino ratio: Return per unit of downside risk	1.43	1.95	-0.52
Omega ratio: Gain probability vs. loss probability	1.16	1.25	-0.08
Calmar ratio: Return relative to maximum drawdown	1.37	2.27	-0.90
Martin ratio: Return relative to average drawdown	3.09	7.21	-4.12

XRT vs. QQQ - Sharpe Ratio Comparison

The current XRT Sharpe Ratio is 0.89, which is lower than the QQQ Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of XRT 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

XRT vs. QQQ - Drawdown Comparison

The maximum XRT drawdown since its inception was -65.81%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for XRT and QQQ.

Drawdown Indicators

	XRT	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-65.81%	-82.97%	+17.16%
Max Drawdown (1Y) Largest decline over 1 year	-13.53%	-11.96%	-1.57%
Max Drawdown (3Y) Largest decline over 3 years	-25.62%	-22.77%	-2.85%
Max Drawdown (5Y) Largest decline over 5 years	-44.57%	-35.12%	-9.45%
Max Drawdown (10Y) Largest decline over 10 years	-47.02%	-35.12%	-11.90%
Current Drawdown Current decline from peak	-5.26%	-6.07%	+0.81%
Average Drawdown Average peak-to-trough decline	-14.95%	-32.61%	+17.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.97%	3.76%	+2.21%

Volatility

XRT vs. QQQ - Volatility Comparison

The current volatility for SPDR S&P Retail ETF (XRT) is 6.29%, while Invesco QQQ ETF (QQQ) has a volatility of 6.96%. This indicates that XRT 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

	XRT	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.29%	6.96%	-0.67%
Volatility (6M) Calculated over the trailing 6-month period	15.03%	16.12%	-1.09%
Volatility (1Y) Calculated over the trailing 1-year period	20.91%	19.37%	+1.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.91%	22.92%	+3.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.20%	22.51%	+4.69%

XRT vs. QQQ - Expense Ratio Comparison

XRT has a 0.35% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

XRT vs. QQQ - Dividend Comparison

XRT's dividend yield for the trailing twelve months is around 0.74%, 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%
XRT SPDR S&P Retail ETF	0.74%	0.77%	1.52%	1.40%	2.15%	1.55%	1.01%	1.57%	1.51%	1.52%	1.36%	1.30%

Frequently Asked Questions

Can I hold both XRT and QQQ in my portfolio?

XRT and QQQ have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XRT or QQQ?

QQQ has higher volatility (6.96%) compared to XRT (6.29%). In terms of maximum drawdown, XRT dropped -65.81% vs QQQ's -82.97%.

Which ETF is better, XRT or QQQ?

On 10-year performance, QQQ leads with 20.46% vs 9.00% for XRT. On fees, QQQ is cheaper at 0.18% per year. On volatility, XRT has been the lower-risk option at 6.29%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XRT or QQQ?

Over the 10-year period, QQQ has performed better with a 20.46% return vs 9.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XRT or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.35% for XRT.

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

XRT has the higher dividend yield at 0.74%, compared with 0.43% for QQQ.

What is the main difference between XRT and QQQ?

XRT is categorized as Consumer Discretionary Equities, while QQQ is Nasdaq-100. XRT tracks S&P Retail Select Industry Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: State Street and Invesco. Their fees differ too: 0.35% for XRT and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (1.40 vs 0.89), 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.