QQQ vs XLK
Invesco QQQ Trust vs State Street Technology Select Sector SPDR ETF
Last updated: 2026-04-02
Invesco QQQ Trust (QQQ) is an exchange-traded fund issued by Invesco that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a moderate expense ratio of 0.18%. The fund offers a modest dividend yield of 0.48%. Launched in 1999, the fund has a 27-year track record.
State Street Technology Select Sector SPDR ETF (XLK) is an exchange-traded fund that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.08%. The fund offers a modest dividend yield of 0.57%. Launched in 1998, the fund has a 28-year track record.
Quick Verdict
XLK is significantly cheaper at 0.08% vs 0.18% expense ratio, saving you approximately $198 per $10,000 invested over 10 years. Over the past year, XLK has significantly outperformed with a 29.7% return vs 23.6%.
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
4 of top 9 holdings overlap (44% overlap in top holdings)
QQQ Top Holdings
| Name | Weight |
|---|---|
| NVIDIA CorporationNVDA | 8.55% |
| Apple Inc.AAPL | 7.67% |
| Microsoft CorporationMSFT | 5.56% |
| Amazon.com, Inc.AMZN | 4.49% |
| Tesla, Inc.TSLA | 3.79% |
| Walmart Inc.WMT | 3.48% |
| Meta Platforms, Inc.META | 3.26% |
| Alphabet Inc.GOOG | 3.13% |
| Broadcom Inc.AVGO | 2.99% |
XLK Top Holdings
| Name | Weight |
|---|---|
| NVIDIA CorporationNVDA | 15.50% |
| Apple Inc.AAPL | 13.63% |
| Microsoft CorporationMSFT | 10.05% |
| Broadcom Inc.AVGO | 5.37% |
| Micron Technology, Inc.MU | 3.39% |
| Palantir Technologies Inc.PLTR | 2.98% |
| Advanced Micro Devices, Inc.AMD | 2.95% |
| Cisco Systems, Inc.CSCO | 2.73% |
| Applied Materials, Inc.AMAT | 2.42% |
| Lam Research CorporationLRCX | 2.38% |
Which One Should You Choose?
Choose XLK if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose XLK if...
recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.