Dividend comparison

QQQ vs XLK: Which Is Better?

Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Invesco QQQ Trust, Series 1 and State Street Technology Select Sector SPDR ETF, side by side. Updated October 21, 2026.

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QQQ vs XLK: key differences
The short answer, from the latest data on this page.
  • Fees. XLK is cheaper at 0.08% a year versus 0.18% for QQQ. On $10,000 that is $10 a year less in fees.
  • Income. Their trailing yields are almost the same: 0.53% for QQQ and 0.45% for XLK. Both pay annual.
  • Performance. Over the last 5 years, XLK returned 142.8% versus 97.0% for QQQ, with dividends reinvested. $10,000 would have grown to $24,275 in XLK and $19,698 in QQQ.
  • Risk. Their worst declines over the last 5 years were similar: -35.1% for QQQ and -33.6% for XLK from peak to trough.
  • Diversification. QQQ holds 102 positions and XLK holds 75. The ten largest positions make up 47.2% of QQQ and 65.2% of XLK.
  • Overlap. 55% of the two portfolios overlap by weight, across 36 shared holdings.
  • Dividend growth. QQQ grew its yearly payout 13.3% a year over the last 4 years, versus 8.7% for XLK.
  • Size. QQQ is the larger fund with $487.5 billion in assets, against $120.7 billion for XLK.

Bottom line: QQQ fits better if you care most about faster dividend growth. XLK fits better if you care most about lower fees and stronger 5-year returns.

Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
MetricQQQ
Invesco QQQ Trust, Series 1
XLK
State Street Technology Select Sector SPDR ETF
Dividend yield (TTM)0.53%0.45%
Dividend / share (TTM)$3.79$0.83
Payout frequencyAnnualAnnual
Last dividend$0.7514 on Oct 8, 2026$0.2207 on Sep 23, 2026
Ex-dividend dateDec 21, 2026Sep 21, 2026
Next payment$0.7941 on Dec 28, 2026—
Dividend growth (CAGR)13.3% over 4 yrs8.7% over 4 yrs
Price$717.63$185.44
Dividend growth streak—4 years
Beta1.231.35
Max drawdown (5Y)-35.1%-33.6%
Market cap$479.05B$120.98B
ExchangeNASDAQAMEX
Expense ratio0.18%0.08%
Assets under management$487.46B$120.70B
Number of holdings10275
Top 10 concentration47.2%65.2%
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.

QQQ

$4.40/mo

$53 /yr at 0.53% yield

XLK

$3.75/mo

$45 /yr at 0.45% yield

Dividend history
Total dividends paid per share in each calendar year. QQQ pays annual; XLK pays annual.
YearQQQXLK
2025$2.7949$0.7840
2024$3.0623$0.7617
2023$2.3200$0.7297
2022$2.1351$0.6453
2021$1.6968$0.5613
Strategy: Broad index
Low-cost funds that hold an entire market or index at market-cap weights and make no attempt to select securities. Return is the index return less a small fee, and dividends are a by-product of what the underlying companies choose to pay rather than an objective of the strategy. Differences between funds tracking the same index usually come down to fee, wrapper structure, share price and trading liquidity, not to holdings.

Current income is low and outside your control, so these need pairing with something else if the portfolio has to produce cash today.

What QQQ vs XLK actually do

QQQ
Invesco's fund tracking the Nasdaq-100, the largest non-financial companies listed on the Nasdaq exchange.

The index is modified market-cap weighted and excludes financials by rule, which is why it lands so heavily in technology, communication services and consumer discretionary names. In December 2025 the fund converted from a unit investment trust to a conventional open-end fund and cut its fee, so it can now reinvest income and lend securities like its peers. It remains the most liquid Nasdaq-100 vehicle by a wide margin and the reference asset for a large share of the options-income products in this category.

Suits investors who want concentrated large-cap growth exposure and anyone who needs deep options liquidity. Dividends are incidental, so it does not answer an income mandate on its own.

Growth-tilted core, concentrated

Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $19,698 in QQQ and $24,275 in XLK.
PeriodQQQXLK
1 month-0.43%-2.08%
3 months3.10%5.66%
Year to date17.09%29.27%
1 year17.78%29.34%
3 years105.61%130.27%
5 years96.98%142.75%
  • QQQ
  • XLK
57167277202120222023202420252026197243

Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.

Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
  • QQQ
  • XLK
0%25%50%75%100%Technology58.8%99.8%Communication Services12.1%0.7%Consumer Cyclical10.2%Consumer Defensive6.1%Industrials5.5%0.1%Healthcare4.4%Utilities1.1%Basic Materials1.0%Energy0.5%0.1%Financial Services0.2%Other0.2%0.0%
QQQ vs XLK holdings overlap
55% overlap by weight, with 36 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
Largest shared holdingsQQQ weightXLK weight
NVDANVIDIA Corp8.17%15.45%
AAPLApple Inc7.82%14.94%
MSFTMicrosoft Corp6.19%11.71%
MUMicron Technology Inc4.41%3.92%
AMDAdvanced Micro Devices Inc3.79%4.66%
AVGOBroadcom Inc2.49%4.66%
INTCIntel Corp2.08%2.69%
PLTRPalantir Technologies Inc1.93%2.58%
CSCOCisco Systems Inc1.82%2.55%
LRCXLam Research Corp1.47%1.99%
Top 10 holdings
Largest positions by portfolio weight.

QQQ102 holdings total

NameWeight
NVDANVIDIA Corp8.17%
AAPLApple Inc7.82%
MSFTMicrosoft Corp6.19%
AMZNAmazon.com Inc4.42%
MUMicron Technology Inc4.41%
AMDAdvanced Micro Devices Inc3.79%
METAMeta Platforms Inc3.28%
GOOGLAlphabet Inc3.15%
TSLATesla Inc3.02%
GOOGAlphabet Inc2.94%

XLK75 holdings total

NameWeight
NVDANVIDIA CORP15.45%
AAPLAPPLE INC14.94%
MSFTMICROSOFT CORP11.71%
AVGOBROADCOM INC4.66%
AMDADVANCED MICRO DEVICES4.66%
MUMICRON TECHNOLOGY INC3.92%
INTCINTEL CORP2.69%
PLTRPALANTIR TECHNOLOGIES INC A2.58%
CSCOCISCO SYSTEMS INC2.55%
LRCXLAM RESEARCH CORP1.99%

Quick verdict

QQQ fits better if you care most about faster dividend growth. XLK fits better if you care most about lower fees and stronger 5-year returns. Model the holding inside your real portfolio before deciding.

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Frequently asked questions

Is QQQ or XLK better for dividend income?
It depends on your goals. QQQ currently yields 0.53% Trailing Twelve Months (TTM) while XLK yields 0.45%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between QQQ and XLK?
Invesco QQQ Trust, Series 1 (QQQ) is an ETF listed on NASDAQ. State Street Technology Select Sector SPDR ETF (XLK) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, QQQ or XLK?
XLK has the lower expense ratio. QQQ charges 0.18% a year and XLK charges 0.08%, a difference of $10 a year on a $10,000 investment.
Which has performed better, QQQ or XLK?
Over the last 5 years, XLK has the higher total return with dividends reinvested: QQQ returned 97.0% and XLK returned 142.8%. Past performance does not predict future returns.
Which is riskier, QQQ or XLK?
Measured by the worst peak-to-trough decline over the last five years, QQQ has been riskier: QQQ fell as much as 35.1% and XLK as much as 33.6%. Their betas are 1.23 and 1.35.
How much do QQQ and XLK overlap?
About 55% of the two portfolios overlap by weight, across 36 shared holdings. The largest shared positions are NVDA, AAPL, MSFT. Holding both still adds meaningful diversification.
How often do QQQ and XLK pay dividends?
Both pay annual. The most recent payments were $0.7514 for QQQ and $0.2207 for XLK.
How much income does $10,000 in QQQ vs XLK generate?
At current TTM yields, $10,000 in QQQ would generate roughly $4.40 per month ($53 annually). The same amount in XLK would produce about $3.75 per month ($45 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both QQQ and XLK?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare QQQ vs XLK with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how QQQ and XLK fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.

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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.