XLK vs QQQ: which ETF is right for you?
State Street Technology Select Sector SPDR ETF (XLK) and Invesco QQQ Trust (QQQ) compared on cost, size, returns, holdings and sector mix.
Expense ratio difference: 0.10 percentage points
Invesco QQQ Trust has an expense ratio of 0.18%, while State Street XLK has a lower expense ratio of 0.08%. This means XLK costs less to manage annually compared to QQQ.
- QQQ has $463.83 billion in assets; XLK has $118.67 billion.
- QQQ's expense ratio is 0.18%; XLK's is 0.08%.
- QQQ's year-to-date return is 12.8%; XLK's is 25.14%.
- QQQ's top sector is Technology at 58%; XLK is 100% Technology.
may suit investors looking for broad exposure to large growth companies.
may suit investors focused specifically on the technology sector with lower fees.
Summary written from the figures below by an AI model. Past returns do not predict future results; this is educational, not advice.
Side-by-side
XLK State Street Technology Select Sector SPDR ETF | QQQ Invesco QQQ Trust | |
|---|---|---|
| Expense ratio | 0.080%● | 0.180% |
| Fund size (assets) | $118.7B | $463.8B● |
| Dividend yield | 0.47%● | 0.45% |
| Return YTD | 25.14%● | 12.80% |
| Return 1 year | 20.04%● | 10.25% |
| 3 years (annualised) | 30.65%● | 26.01% |
| 5 years (annualised) | 18.18%● | 13.00% |
| 10 years (annualised) | 23.69%● | 20.26% |
| Volatility (5y std dev) | 24.2% | 20.9%● |
| Beta vs market (5y) | 1.34● | 1.20 |
| Issuer | State Street Investment Management | Invesco |
| Launched | 1998-12-16 | 1999-03-10 |
● marks the best value in a row (lowest cost or volatility, highest return, yield or size). Returns as of 2026-11-06; past performance does not predict future results.
What the fees cost you
A simple illustration: the same $0M growing at an assumed 7% a year before fees. Only the expense ratios differ. This is not a forecast.
Top holdings and overlap
- AAPLApple Inc15.3%
- NVDANVIDIA Corp15.1%
- MSFTMicrosoft Corp11.8%
- AVGOBroadcom Inc4.7%
- AMDAdvanced Micro Devices Inc4.5%
- MUMicron Technology Inc4.0%
- PLTRPalantir Technologies Inc Ordinary Shares - Class A2.6%
- CSCOCisco Systems Inc2.5%
- INTCIntel Corp2.0%
- AMATApplied Materials Inc1.9%
- AAPLApple Inc8.2%
- NVDANVIDIA Corp8.0%
- MSFTMicrosoft Corp6.3%
- MUMicron Technology Inc4.5%
- AMZNAmazon.com Inc4.2%
- AMDAdvanced Micro Devices Inc3.7%
- TSLATesla Inc3.4%
- METAMeta Platforms Inc Class A3.0%
- WMTWalmart Inc2.7%
- GOOGLAlphabet Inc Class A2.7%
XLK and QQQ share 5 of their top 10 holdings (AAPL, NVDA, MSFT, AMD, MU), about 30.2% of each fund in those names.
Overlap is measured on the top 10 holdings only.
Sector mix
- Technology100.0%
- Technology58.0%
- Communication Services11.1%
- Consumer Cyclical11.0%
- Consumer Defensive6.8%
- Industrials5.3%
- Healthcare4.8%
Common questions
Which has lower fees, XLK or QQQ?
XLK has the lower expense ratio at 0.080% a year, against 0.180% for QQQ. On $10,000 that is about $10 a year in fees.
Which is bigger, XLK or QQQ?
QQQ manages about $463.8 billion in assets, compared with $118.7 billion for XLK.
Do XLK and QQQ hold the same stocks?
They share 5 of their top 10 holdings (AAPL, NVDA, MSFT, AMD, MU), roughly 30.2% of each fund in those names, so owning both adds little diversification.
Compare any ETFs
Pick up to four funds and see fees, overlap and the cost of fees over time.
Open the compare toolFund data comes from public fund filings and market data and is refreshed daily; returns are total returns and past performance does not predict future results. This page is educational and is not investment advice. Check the fund's official documents before investing.