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ETF Comparison

QQQ vs XLK: Which Is the Better Pick in 2026?

A head-to-head comparison of Invesco QQQ Trust and State Street Technology Select Sector SPDR ETF covering yield, cost, risk, and income potential.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • QQQInvestors who want a growth tilt and can accept bigger swings for higher upside.
  • XLKInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

QQQ has lagged XLK over the trailing twelve months, posting a 24.84% total return against 41.12%. The lead holds up over 10 years too: XLK has compounded at 24.98% a year, against 21.10% for QQQ. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Mar 1999Volatility Sharpe Sortino Max drawdown
QQQ22.67%24.84%28.26%16.47%21.10%10.92%20.4%1.011.46-22.8%
XLK38.97%41.12%34.94%22.29%24.98%10.39%25.0%1.021.47-25.7%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Mar 1999” measures every fund from March 10, 1999 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricQQQXLK
Full nameInvesco QQQ TrustState Street Technology Select Sector SPDR ETF
IssuerInvescoState Street
Underlying indexNasdaq-100 IndexTechnology Select Sector Index
Last Close$749.58 as of October 2, 2026$199.81 as of October 2, 2026
Distribution rate0.40%0.44%
Trailing 12-month yield0.41%0.42%
Distribution Safety Score™ 9799
Safety-Adjusted Yield 0.39%0.44%
Expense ratio0.18%0.08%
AUM$501B$128B
Distribution frequencyQuarterlyQuarterly
ObjectiveTrack the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.Track the Technology Select Sector Index, providing exposure to the information technology constituents of the S&P 500.
Asset classEquityEquity
Inception date03/10/199912/16/1998
Beta1.261.5
Last dividend$0.75143 declared, pays 10/08/2026$0.221
Ex-dividend date09/21/202609/21/2026

Bottom lineChoose QQQ if you want a growth tilt and can accept bigger swings for higher upside. Choose XLK if you want broad equity exposure.

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Income calculator

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Invesco
ETFs246
Total AUM$1012B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major ETF provider known for offering a comprehensive lineup spanning multiple asset classes and investment strategies. The company specializes in income-focused products including dividend, covered call, and bond strategies, while also maintaining broad exposure across equity, factor-based, thematic, and ESG investing themes. Invesco's portfolio ranges from index-tracking funds to alternatives and specialized offerings like digital assets and BulletShares, making it one of the more expansive ETF families available to investors.

See our curated list of related YouTube videos on QQQ.

See all Invesco ETFs
State Street
ETFs179
Total AUM$2146B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLK.

See all State Street ETFs

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Quick verdict

QQQ (Invesco QQQ Trust) and XLK (State Street Technology Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XLK offers the higher yield at 0.44% vs 0.40% for QQQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLK is cheaper with an expense ratio of 0.08% compared to 0.18%.

They have different reference exposures: QQQ is linked to Nasdaq-100 Index while XLK is linked to Technology Select Sector Index, which means their performance drivers differ.

QQQ is the larger fund by assets ($501B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose QQQ

Invesco QQQ Trust

  • Want a growth tilt and can accept larger swings for more upside.
  • Prefer lower volatility — a beta of 1.3 vs 1.5 for XLK.

Choose XLK

State Street Technology Select Sector SPDR ETF

  • Want broad equity exposure.
  • Want to keep costs low — a 0.08% expense ratio vs 0.18% for QQQ.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, QQQ would generate roughly $10.00 cash per distribution, while XLK would produce $11.00 cash per distribution, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.40%
XLK yield0.44%
Cash diff on $10K$1.00

Cost & efficiency

Over 10 years on $10,000, QQQ would cost approximately $180 in fees vs $80 for XLK (simplified, not compounded). The $100.00 difference may be offset by yield or performance.

QQQ ER0.18%
XLK ER0.08%

Strategy & risk

QQQ tracks Nasdaq-100 Index with a growth approach, while XLK tracks Technology Select Sector Index with a technology approach. Beta is 1.26 for QQQ and 1.5 for XLK, making QQQ the less volatile of the two by this measure.

QQQ beta1.26
XLK beta1.5

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $501B in assets. XLK is managed by State Street (launched 12/16/1998) with $128B in assets.

QQQ AUM$501B
XLK AUM$128B
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Frequently asked questions

What is the current distribution rate for QQQ and XLK?

QQQ currently distributes 0.40% and XLK 0.44%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is QQQ or XLK better for dividend income?

It depends on your goals. XLK currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between QQQ and XLK?

QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a growth approach, while XLK (State Street Technology Select Sector SPDR ETF) tracks Technology Select Sector Index with a technology approach. They are issued by Invesco and State Street respectively.

Can I hold both QQQ and XLK?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is QQQ or XLK safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: XLK scores 99, QQQ scores 97. Neither has a clear safety edge on that measure. QQQ has also shown lower price volatility (beta 1.26 vs 1.50 for XLK). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, QQQ or XLK?

QQQ has an expense ratio of 0.18% while XLK charges 0.08%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in QQQ vs XLK generate?

At current rates, $10,000 in QQQ would generate roughly $10.00 cash per distribution ($40.00 annually). The same in XLK would produce about $11.00 cash per distribution ($44.00 annually).

Which has performed better historically, QQQ or XLK?

QQQ has lagged XLK over the trailing twelve months, posting a 24.84% total return against 41.12%. The lead holds up over 10 years too: XLK has compounded at 24.98% a year, against 21.10% for QQQ. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

QQQ vs XLK — at a glance

Generated October 3, 2026.

Overview

QQQ and XLK are both broad-market technology-heavy ETFs, but they target different universes. QQQ tracks the Nasdaq-100 Index, capturing the 100 largest non-financial companies trading on the Nasdaq—a mix dominated by tech, consumer discretionary, and communication stocks. XLK tracks only the technology constituents of the S&P 500, making it a pure-play technology sector fund with exposure to S&P 500 member companies in information technology only. The key distinction: QQQ casts a wider net across Nasdaq's mega-cap growth companies, while XLK isolates the S&P 500's tech sector.

How they differ

The biggest difference is scope. QQQ's Nasdaq-100 universe includes major non-financial Nasdaq stocks regardless of their S&P 500 membership—meaning it captures some large companies that don't appear in XLK at all, and it owns companies across multiple sectors beyond tech. XLK is a pure sector filter, holding only S&P 500 information technology companies, so it's narrower and more concentrated by definition.

Second, fees and asset base differ modestly. XLK charges 0.08% versus 0.18% for QQQ, a 0.1% gap, while QQQ commands $501B in assets versus $128B for XLK. Both offer low costs, but XLK has the slight edge on expense ratio despite a much smaller base.

Third, volatility is noticeably higher in XLK. QQQ's beta is 1.26, while XLK's is 1.5, reflecting XLK's tighter focus on a single sector. Both distributions are modest—0.40% for QQQ and 0.44% for XLK, paid quarterly—so neither is a yield play.

Who each is best for

QQQ: Fits investors seeking broad exposure to Nasdaq mega-cap growth with diversification across sectors (tech, consumer, healthcare, communication), and who can tolerate 1.26 beta for long-term growth capture.

XLK: Fits investors wanting pure-play technology sector exposure with a tighter concentration bet on S&P 500 tech companies, accepting 1.5 beta in exchange for sector purity.

Key risks to know

  • Concentration in mega-cap tech. Both funds are heavily weighted toward a handful of dominant technology companies. While QQQ's broader Nasdaq-100 base includes non-tech names, tech still dominates both portfolios, so correlated downturns in mega-cap tech will affect both meaningfully.
  • Sector-specific cyclicality. Technology valuations are sensitive to interest-rate expectations and earnings cycles. A prolonged period of declining tech earnings or rising rates could pressure both funds, with XLK likely experiencing sharper declines given its 1.5 beta and narrower diversification.
  • XLK's single-sector volatility. Restricting holdings to the S&P 500 technology sector excludes Nasdaq-100 names outside the S&P 500 (some very large ones), concentrating XLK's risk further. A sector downturn that spares some mega-cap Nasdaq names outside the S&P 500 won't help XLK holders.
  • QQQ's non-financial Nasdaq exposure. Inclusion of Nasdaq stocks with no S&P 500 membership introduces liquidity and company-specific risk that XLK avoids by construction, though this also provides upside in high-growth names not yet in the index mainstream.

Bottom line

If you want broad mega-cap growth exposure with multisector diversification across the Nasdaq-100, QQQ's lower beta and larger asset base suit a buy-and-hold approach. If you believe technology will outperform and want concentrated sector exposure within the S&P 500, XLK's cheaper expense ratio and pure-play focus deliver that trade-off—at the cost of higher volatility. Neither is a passive alternative to the other; they serve different allocation strategies. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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These comparisons follow the Dividend Vision methodology.