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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.

Data updated August 19, 2026

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

QQQ has lagged XLK over the trailing twelve months, posting a 24.68% total return against 38.66%. The lead holds up over 10 years too: XLK has compounded at 24.12% a year, against 20.68% 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.
SymbolYTD1Y3Y5Y10YSince Mar 1999Volatility Sharpe Sortino Max drawdown
QQQ17.07%24.68%26.08%15.29%20.68%10.78%20.5%0.921.32-22.8%
XLK27.57%38.66%30.67%20.14%24.12%10.09%25.0%0.891.27-25.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Mar 1999” measures every fund from March 10, 1999 — the youngest fund's first trading day — 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
Last Close$717.51 as of August 19, 2026$185.62 as of August 19, 2026
Distribution yield0.45%0.49%
Distribution Safety Score™ 9799
Expense ratio0.18%0.08%
AUM$496B$124B
Distribution frequencyQuarterlyQuarterly
Underlying indexNasdaq-100 IndexTechnology Select Sector Index
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
Beta1.261.47
Last dividend$0.8135$0.2280
Ex-dividend date06/22/202606/22/2026

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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Invesco
ETFs247
Total AUM$1008B

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
ETFs180
Total AUM$2169B

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 0.49% vs 0.45% 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 track different benchmarks: QQQ is linked to Nasdaq-100 Index while XLK tracks Technology Select Sector Index, which means their performance drivers differ.

QQQ is the larger fund by assets ($496B), which generally means tighter spreads and better 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 $3.75/month, while XLK would produce $4.08/month, at current distribution rates. Both pay quarterly distributions.

QQQ yield0.45%
XLK yield0.49%
Monthly diff on $10K$0.33

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 1.47 for XLK, making QQQ the less volatile of the two by this measure.

QQQ beta1.26
XLK beta1.47

Fund details

QQQ is managed by Invesco (launched 03/10/1999) with $496B in assets. XLK is managed by State Street (launched 12/16/1998) with $124B in assets.

QQQ AUM$496B
XLK AUM$124B
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Frequently asked questions

What is the current distribution yield for QQQ and XLK?

QQQ currently distributes 0.45% and XLK 0.49%, based on fund data updated August 2026. Distribution yield 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 1.47 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 $3.75 per month ($45.00 annually). The same in XLK would produce about $4.08 per month ($49.00 annually).

Which has performed better historically, QQQ or XLK?

QQQ has lagged XLK over the trailing twelve months, posting a 24.68% total return against 38.66%. The lead holds up over 10 years too: XLK has compounded at 24.12% a year, against 20.68% 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 August 15, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

QQQ and XLK are both large-cap technology-heavy ETFs, but they track different universes. QQQ follows the Nasdaq-100, which includes the 100 largest non-financial stocks trading on the Nasdaq (heavily weighted toward tech, but also containing consumer discretionary, industrials, and healthcare). XLK tracks the Technology Select Sector Index, limiting exposure strictly to information technology companies within the S&P 500. The key distinction: QQQ casts a wider net across the Nasdaq's largest names, while XLK filters for S&P 500 tech stocks only.

How they differ

QQQ's broader Nasdaq-100 mandate means it can hold non-tech mega-caps (Tesla, Amazon, Apple, Microsoft) alongside pure software and semiconductor plays, whereas XLK's sector constraint limits it to S&P 500 tech constituents, excluding some Nasdaq-heavy names outside the S&P or non-tech Nasdaq giants. QQQ's distribution yield of 0.45% trails XLK's 0.48% only slightly; both pay quarterly. The biggest structural difference lies in expense ratios: XLK costs 0.09% annually versus QQQ's 0.18%, a meaningful gap at this scale given XLK's $123B in assets versus QQQ's $479B. QQQ carries a higher beta of 1.26 compared to XLK's 1.47, meaning XLK amplifies market moves more sharply despite the tighter sector definition.

Who each is best for

QQQ: Fits investors seeking broad exposure to the largest growth-oriented stocks, particularly those comfortable with Nasdaq concentration and willing to accept holdings outside the traditional tech sector for diversification within a growth mandate.

XLK: Designed for investors who want pure-play technology sector exposure filtered through S&P 500 constituents and prefer a lower expense ratio, accepting the trade-off of tighter concentration within information technology.

Key risks to know

  • Concentrated sector rotation risk. Both ETFs are heavily weighted toward a handful of mega-cap tech names. Sector-wide drawdowns in software, semiconductors, or cloud computing will hit both portfolios hard, though QQQ's broader mandate offers slightly more cushion from pure-tech downturns.
  • Growth-heavy valuation sensitivity. QQQ and XLK both track large-cap growth stocks with elevated price-to-earnings multiples. Rising interest rates or a shift toward value investing could pressure both, with QQQ's higher beta amplifying that downside.
  • Nasdaq concentration in QQQ. QQQ's Nasdaq-100 exposure means it excludes large S&P 500 tech names and may overweight Nasdaq-listed consumer discretionary or industrial stocks, creating tracking differences from broader market moves that XLK would partially offset through its S&P 500 anchor.
  • XLK's S&P 500 tech constraint. By limiting exposure to the Technology Select Sector Index, XLK may underperform if Nasdaq-only or pre-S&P-inclusion growth names outperform, a meaningful consideration given Nasdaq's historical leadership in innovation-driven rallies.

Bottom line

If you want exposure to the largest growth stocks across the Nasdaq's breadth, QQQ offers it with modest income and a 25-year track record; if you're seeking pure S&P 500 technology sector play at a lower cost, XLK's 0.09% expense ratio and tighter focus appeal. Both carry meaningful growth volatility and sector concentration risk—QQQ amplifies broad market swings less sharply than XLK despite its lower beta, a reflection of their differing universes. Past performance does not guarantee 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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