What is the fee difference between QQQ and XLK?

QQQ charges 0.18% a year and XLK charges 0.08%. On $10,000 invested that is about $18 a year for QQQ and $8 for XLK, a gap of $10. XLK is the cheaper way to hold a basket of large US technology stocks, while QQQ's fee buys a broader growth index.

What index does each fund track?

QQQ tracks the Nasdaq-100, the largest non-financial companies listed on the Nasdaq exchange, which includes technology but also consumer names such as Amazon and Tesla. XLK tracks the S&P Technology Select Sector index, the information technology stocks within the S&P 500 regardless of exchange.

How much do QQQ and XLK overlap?

Five of the 10 largest holdings appear in both funds: NVIDIA, Apple, Microsoft, Micron Technology and AMD. QQQ's top 10 also includes Amazon, Alphabet, Meta Platforms and Tesla, which XLK does not classify as technology. XLK's top 10 instead includes Broadcom, Intel, Cisco, Palantir and Lam Research.

Which fund is more concentrated?

XLK. NVIDIA is 14.16% of XLK, Apple 13.19% and Microsoft 9.85%, so the top three are about 37% of the fund. In QQQ the same three stocks weigh 8.46%, 7.89% and 5.89%, or about 22%. XLK also has fewer holdings, 76 versus 104.

Which pays more in dividends?

Neither is an income fund. Both QQQ and XLK show a dividend yield of 0.41%. Large technology and growth companies tend to reinvest profits rather than pay them out, so investors in either fund rely on share price growth rather than dividends for their return.

Which fund suits which goal?

QQQ suits investors who want exposure to large-cap growth companies across several sectors and accept a higher fee for that breadth. XLK suits those who want a focused position on the technology sector at a lower cost and are comfortable with three stocks making up over a third of the fund.

How do QQQ and XLK compare on size and liquidity?

QQQ is much larger, with $484.28 billion in net assets against $123.19 billion for XLK. Both are among the most heavily traded ETFs in the US, so buying and selling is straightforward for retail investors. QQQ's size and trading volume also make it a popular vehicle for options.

How are QQQ and XLK taxed?

Both are US-listed ETFs. Non-US investors may pay US withholding tax on the small dividends they distribute, at a rate set by treaty. Because yields are only 0.41%, most of the tax question for these funds is about capital gains, which follow your local rules and account type.

Can I hold both QQQ and XLK?

You can, but the overlap is heavy. Half of the top 10 holdings are shared and the largest positions in both are NVIDIA, Apple and Microsoft. Holding both mostly increases your weight in those three companies. Some investors pair XLK with a broad market fund instead to avoid doubling up.

QQQ vs XLK

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

QQQ tracks the Nasdaq-100 with 104 growth stocks, including NVIDIA, Apple, Amazon and Tesla, for 0.18% a year. XLK tracks the S&P Technology Select Sector index with 76 stocks for 0.08%, and NVIDIA, Apple and Microsoft make up about 37% of it. QQQ suits investors who want broad growth exposure, while XLK suits those who want concentrated technology at a lower fee. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

QQQ

Metric

XLK

0.18%

Expense Ratio

0.08%

0.41%

Dividend Yield

0.41%

$484.28B

Net Assets

$123.19B

104

Holdings

Mar 10, 1999

Inception Date

Dec 16, 1998

NASDAQ 100 Index

Index Tracked

S&P Technology Select Sector

Large Growth

Fund Category

Technology

XLK costs about $10.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	QQQ	XLK
NVDANVIDIA Corporation	8.46%	14.16%
AAPLApple Inc.	7.89%	13.19%
MSFTMicrosoft Corporation	5.89%	9.85%
MUMicron Technology, Inc.	4.85%	4.04%
AMDAdvanced Micro Devices, Inc.	3.91%	4.51%

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Investment Analysis

QQQ

Pros

Holds 104 stocks across technology, consumer and communication sectors, not just tech.
Very large fund with $484.28 billion in net assets and a history since 1999.
Less top-heavy than XLK: its three largest holdings are about 22% of assets.

Considerations

Expense ratio of 0.18% is more than double XLK's 0.08%.
Dividend yield of 0.41% offers very little income.
Growth tilt can swing hard in both directions during market rotations.

XLK

Pros

Expense ratio of 0.08%, or $8 a year per $10,000, versus $18 for QQQ.
Includes S&P 500 technology names from any US exchange, not only Nasdaq listings.
Large and established fund with $123.19 billion in assets, trading since 1998.

Considerations

NVIDIA, Apple and Microsoft together make up about 37% of the fund.
Only 76 holdings, all in one sector, so no diversification across industries.
Low 0.41% dividend yield, so returns depend almost entirely on price gains.

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About QQQ and XLK

QQQ (QQQ)

Invesco QQQ Trust Series 1 (QQQ) is a widely traded exchange‑traded fund that seeks to track the Nasdaq‑100 Index, offering concentrated exposure to large non‑financial companies listed on the Nasdaq — think technology, consumer and biotech leaders. It provides a convenient way to gain growth-oriented exposure to a basket of big-cap, often high-growth names, with intraday liquidity like a stock. Investors should know QQQ is relatively concentrated in a handful of large issuers and sectors, which can amplify both upside and downside versus broader-market funds. It pays modest dividends and typically has higher volatility than diversified market-cap indices. As with any ETF, past performance does not predict future returns; values can fall as well as rise. This content is educational and not personalised advice — consider your risk tolerance, investment horizon and diversification needs before investing, and consult a regulated adviser for tailored guidance.

XLK (XLK)

Technology Sector SPDR (XLK) is an exchange‑traded fund designed to give investors broad exposure to the US technology sector by tracking a technology‑focused index. It concentrates on large‑capitalisation companies across software, hardware, semiconductors and IT services, so holdings are often dominated by a handful of industry leaders. The ETF is passively managed, typically has a low expense ratio relative to actively managed funds, and can serve as a straightforward way to gain sector exposure without selecting individual stocks. Investors should be aware of sector concentration risk, sensitivity to interest‑rate changes and valuation swings, and the cyclicality of technology spending. XLK is suitable for those seeking long‑term exposure to technology trends but not as a substitute for a diversified portfolio. This is general information only and not personal advice; values can rise and fall and past performance does not predict future returns.

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QQQ vs XLK

Fund Snapshot