QQQM vs XLK: Not the Same Fund, Despite the Overlap
People assume these are interchangeable tech funds. They are not. QQQM tracks the Nasdaq-100 across several sectors. XLK holds only the technology stocks in the S&P 500.
QQQM and XLK get confused constantly, but they track different things. QQQM follows the Nasdaq-100: the 101 largest non-financial companies on the Nasdaq, which is tech-heavy but also includes names like Costco, PepsiCo, and Netflix across consumer, communication, and healthcare. XLK is narrower. It holds only the information-technology stocks inside the S&P 500, roughly 65 companies, and Apple plus Microsoft alone are close to 40% of the fund. So XLK is the more concentrated, purer technology bet, while QQQM is broad large-cap growth that happens to lean tech. On cost, XLK is cheaper at 0.09% versus QQQM at 0.15%. Choose XLK if you specifically want a concentrated US technology position. Choose QQQM if you want the broader Nasdaq-100 growth basket, not just the tech slice.
📋 QQQM vs XLK — Key Facts Side by Side
| Metric | QQQM | XLK |
|---|---|---|
| Fund Name | Invesco NASDAQ 100 ETF | State Street Technology Select Sector SPDR ETF |
| Issuer | Invesco | State Street |
| Tracks Index | Nasdaq-100 | S&P Technology Select Sector |
| Expense Ratio | 0.15% | 0.09% ✓ |
| Cost per $10K/yr | $15.00 | $9.00 |
| AUM | $82.9B | $103.3B |
| Holdings | 101 | 65 |
| Inception | 2020 | 1998 |
| 1-Year Return | +41.67% | +59.98% |
| 3-Year Return | +30.19% | +33.64% |
| 5-Year Return | +17.42% | +22.01% |
| Dividend Yield | 0.46% | 0.48% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 1.00% | 1.00% |
Expense ratio, AUM, and returns updated May 25, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 QQQM vs XLK — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy QQQM or XLK?
- You want broader diversification (101 holdings vs 65)
- You want tech-heavy large-cap growth exposure via Nasdaq-100
- You want the lowest fees — saves ~$6/yr per $10K vs QQQM
- You already use State Street and prefer staying within their fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ QQQM vs XLK — Frequently Asked Questions
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