ETF Versus

QQQ vs XLI

Invesco QQQ Trust vs State Street Industrial Select Sector SPDR ETF

Last updated: 2026-04-02

QQQ Invesco

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 0.20%. The fund offers a modest dividend yield of 0.48%. Launched in 1999, the fund has a 27-year track record.

AUM: $407.7B ER: 0.20% Yield: 0.48% Since: 1999-03-10
XLI State Street

State Street Industrial Select Sector SPDR ETF (XLI) is an exchange-traded fund issued by State Street that provides exposure to us sector - industrials securities. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.25%. Launched in 1998, the fund has a 28-year track record.

AUM: $25.6B ER: 0.09% Yield: 1.25% Since: 1998-12-22

Quick Verdict

XLI is significantly cheaper at 0.09% vs 0.20% expense ratio, saving you approximately $217 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (22.5% vs 23.4%), tracking closely. Income investors may prefer XLI for its higher yield (1.3% vs 0.5%).

Key Metrics

Metric QQQ XLI
Expense Ratio 0.20% 0.09%
Dividend Yield 0.5% 1.3%
Fund Family Invesco State Street
Category US Large Cap Growth US Sector - Industrials

Performance Chart

Indexed to 100 at start (5-year comparison)

75 99 123 147 171 195 2021-04 2022-06 2023-10 2024-12 2026-04
QQQ +76.2%
XLI +64.2%

Performance Comparison

Period QQQ XLI Difference
1 Month -3.02% -6.38% +3.36%
3 Months -4.85% +3.96% -8.81%
6 Months -4.00% +5.87% -9.87%
YTD -4.85% +3.96% -8.81%
1 Year +22.53% +23.44% -0.91%
3 Years +82.23% +62.04% +20.19%
5 Years +76.23% +64.24% +11.99%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period QQQ Fees XLI Fees You Save
$10,000 10 years $396 $179 $217
$10,000 20 years $1,696 $771 $926
$10,000 30 years $5,443 $2,486 $2,957
$50,000 10 years $1,982 $896 $1,086
$50,000 30 years $27,214 $12,428 $14,787
$100,000 30 years $54,428 $24,855 $29,573

Risk Metrics

Based on 5 years of daily returns

Metric QQQ XLI
Annualized Volatility 22.4% 17.2%
Max Drawdown -35.6% -22.7%
Sharpe Ratio 0.42 0.40

Dividend Comparison

Metric QQQ XLI
Annual Dividend (per share) $2.81 $2.05
Dividend Yield 0.48% 1.25%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

QQQ Top Holdings

NameWeight
NVIDIA Corp.903.46%
Apple Inc.800.82%
Microsoft Corp.716.56%
Amazon.com, Inc.491.91%
Tesla, Inc.396.59%
Meta Platforms, Inc.386.46%
Alphabet Inc.338.25%
Broadcom Inc.325.82%
Palantir Technologies Inc.223.47%

XLI Top Holdings

NameWeight
General Electric Co680.74%
Caterpillar Inc561.69%
RTX Corp515.19%
GE Vernova Inc371.52%
Boeing Co/The356.20%
Uber Technologies Inc355.71%
Union Pacific Corp287.47%
Honeywell International Inc259.50%
Eaton Corp PLC259.19%
Deere & Co245.23%

Which One Should You Choose?

Choose XLI if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose XLI if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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