XSW vs. QQQ
Compare and contrast key facts about SPDR S&P Software & Services ETF (XSW) and Invesco QQQ (QQQ).
XSW and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XSW is a passively managed fund by State Street that tracks the performance of the S&P Software & Services Select Industry Index. It was launched on Sep 28, 2011. 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 XSW 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: XSW or QQQ.
Key characteristics
| XSW | QQQ | |
|---|---|---|
| YTD Return | -3.47% | 3.82% |
| 1Y Return | 25.08% | 32.66% |
| 3Y Return (Ann) | -3.68% | 8.61% |
| 5Y Return (Ann) | 8.61% | 18.53% |
| 10Y Return (Ann) | 13.89% | 18.13% |
| Sharpe Ratio | 1.11 | 2.00 |
| Daily Std Dev | 22.31% | 16.23% |
| Max Drawdown | -45.38% | -82.98% |
| Current Drawdown | -22.05% | -4.88% |
Correlation
The correlation between XSW and QQQ is 0.77, 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
XSW vs. QQQ - Performance Comparison
In the year-to-date period, XSW achieves a -3.47% return, which is significantly lower than QQQ's 3.82% return. Over the past 10 years, XSW has underperformed QQQ with an annualized return of 13.89%, while QQQ has yielded a comparatively higher 18.13% 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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XSW vs. QQQ - Expense Ratio Comparison
XSW has a 0.35% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
XSW vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Software & Services ETF (XSW) 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
XSW vs. QQQ - Dividend Comparison
XSW's dividend yield for the trailing twelve months is around 0.16%, less than QQQ's 0.62% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XSW SPDR S&P Software & Services ETF | 0.16% | 0.20% | 0.09% | 0.13% | 0.26% | 0.12% | 0.31% | 0.46% | 0.87% | 0.54% | 0.53% | 2.07% |
QQQ Invesco QQQ | 0.62% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
XSW vs. QQQ - Drawdown Comparison
The maximum XSW drawdown since its inception was -45.38%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for XSW and QQQ. For additional features, visit the drawdowns tool.
Volatility
XSW vs. QQQ - Volatility Comparison
SPDR S&P Software & Services ETF (XSW) has a higher volatility of 6.57% compared to Invesco QQQ (QQQ) at 5.44%. This indicates that XSW'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.