What five years of weekly data say
- QQQ returned +14.8% a year and XLK +20.2% a year over the past five years, dividends reinvested.
- QQQ was the calmer ride: 21% annual volatility, against 24%.
- Near twins (correlation 0.97). They rise and fall in lockstep, so holding both adds almost no diversification.
- XLK costs less to hold: 0.08% a year against 0.18%, or $10 less per $10,000 each year.
The numbers side by side
| Metric | XLXLK | |
|---|---|---|
| Price | $721.45 | $189.60 |
| Fund size | $488.98B | $121.44B |
| 1-year return | +21.0% | +36.7% (ahead) |
| 3-year return, a year | +27.0% | +32.9% (ahead) |
| 5-year return, a year | +14.7% | +20.2% (ahead) |
| Volatility, a year | 21% (ahead) | 24% |
| Worst drawdown | −35% | −33% (ahead) |
| Worst week | −9.9% (ahead)Mar 2025 | −11.6%Mar 2025 |
| Beta | 1.26 | 1.50 |
| Dividend yield | 0.42% | 0.43% |
| Expense ratio | 0.18% | 0.08% (ahead) |
Do QQQ and XLK move together?
Correlation compares QQQ’s and XLK’s weekly returns from Sep 2021 to Sep 2026. Two holdings near +1 fall on the same weeks, so owning both doesn’t cushion anything. Your portfolio has more than two lines, and Portfolio Terminal runs this check across every pair you hold.
How far each one fell
QQQ
−35%
From its Nov 2021 high to Oct 2022. Back at that high by Dec 2023.
XLK
−33%
From its Dec 2021 high to Oct 2022. Back at that high by Jun 2023.
Worst peak-to-trough fall on weekly closes · dividends reinvested
How much of it is the same money
QQQ vs XLK: what people ask
Is QQQ better than XLK?
Over the past five years, XLK delivered the higher return: +20.2% a year against +14.8% for QQQ, dividends reinvested. Its worst fall was also shallower (−33% against −35%). Which is better depends on the job it does in your portfolio, and past returns don’t predict future ones.
What is the difference between QQQ and XLK?
QQQ is Invesco QQQ Trust, a fund with $488.98B in assets. XLK is Technology Select Sector SPDR, a fund with $121.44B in assets. QQQ charges 0.18% a year and XLK 0.08%. Counting only each fund’s ten largest positions, 32% of their money sits in the same companies.
Should I own both QQQ and XLK?
Their weekly returns had a correlation of 0.97 over the past five years. They rise and fall in lockstep, so holding both adds almost no diversification. Whether that suits you depends on everything else you hold, which is the check Portfolio Terminal runs across a whole portfolio.
Which is riskier, QQQ or XLK?
XLK swung more: 24% annual volatility against 21% for QQQ. At their worst, QQQ fell 35% and XLK 33% from a previous high. Against the broad market, their betas are 1.26 and 1.50.
Which pays a higher dividend, QQQ or XLK?
XLK currently yields 0.43%, against 0.42% for QQQ. Yields move with price, so a higher yield can also mean a falling price.
Which is cheaper to hold, QQQ or XLK?
XLK charges 0.08% a year and QQQ 0.18%. On $10,000, that is $10.00 a year in favor of XLK.
Returns use weekly closes adjusted for dividends and splits, from Sep 2021 to Sep 2026. Quotes, fees and holdings come from public market data and refresh hourly. This page describes what happened; it is not investment advice, and past performance doesn’t predict future returns.