What are the main differences in the investment scope of QQQM and XLK?

QQQM (stock_1) is categorised as a Large Growth fund tracking the Nasdaq-100, which includes tech but also consumer and healthcare companies. XLK (stock_2) is a Technology Sector fund that isolates the technology portion of the broader market. While both heavily feature tech giants, QQQM offers a wider cross-sector exposure, whereas XLK is more narrowly focused, making them distinct tools for different market views.

How do expense ratios differ between QQQM and XLK?

The expense ratio is the annual fee charged to manage the fund. QQQM (stock_1) charges 0.15%, while XLK (stock_2) charges a lower 0.08%. This 0.07% difference means XLK is cheaper to hold on paper. In practice, these fees are deducted from the fund's assets, reducing the net return slightly compared to the underlying index performance, regardless of how the fund's share price moves.

Why does inception date matter for ETFs like these?

The inception date marks when the fund began trading. XLK (stock_2) launched in December 1998, providing a long history of performance across various market cycles. QQQM (stock_1) is much newer, starting in October 2020. While QQQM tracks a similar index to its older sibling QQQ, its own specific record is shorter. This limits the available data for analysing how the fund itself has handled liquidity or tracking error over time.

What is the overlap in top holdings between the two funds?

There is significant overlap in the top holdings. Five companies appear in the top 10 of both funds: NVDA, AAPL, MSFT, MU, and AMD. However, the weightings differ. In XLK (stock_2), NVDA constitutes 15.53% and AAPL 14.16%. In QQQM (stock_1), NVDA is 8.46% and AAPL 7.89%. This indicates XLK has higher concentration in specific tech leaders compared to the more diluted weights in the broad Nasdaq-100 of QQQM.

How do the dividend yields compare for investors?

Both QQQM (stock_1) and XLK (stock_2) currently report an identical dividend yield of 0.43%. This is considered low compared to income-focused ETFs, reflecting that these funds hold companies that often prioritise growth and share buybacks over large cash distributions. Investors seeking high regular income might find these yields insufficient, whereas those focused on capital appreciation will look past the low yield to the price performance of the underlying shares.

Which fund has higher net assets and why does it matter?

XLK (stock_2) holds $123.2 billion in net assets, while QQQM (stock_1) holds $105.7 billion. High net assets generally indicate strong investor demand and can lead to better liquidity, meaning it is easier to buy or sell large quantities without significantly affecting the share price. Both funds are substantial in size, suggesting they are well-established vehicles with deep trading markets, reducing concerns about bid-ask spread volatility for retail investors.

How does sector concentration differ between the two ETFs?

XLK (stock_2) is entirely focused on the Technology sector, meaning it lacks diversification outside of tech. QQQM (stock_1), while tech-heavy, is a multi-sector fund that includes Consumer Discretionary and Healthcare companies like AMZN and AMGN (implied by category, though only specific holdings listed). For example, QQQM holds GOOGL and META, which are tech, but the index structure allows for broader large-cap growth exposure. XLK is a pure-play sector tool.

What index does QQQM track and is it available?

QQQM (stock_1) is designed to track the Nasdaq-100 Index. However, the specific 'Index tracked' field in the provided data is marked as 'not available'. Despite this data gap, the fund's name and category (Large Growth) confirm its intent to mirror the Nasdaq-100. Investors should be aware that while the tracking target is clear from the fund name, precise index tracking data is not supplied in this specific dataset.

What are the risks of holding a concentrated ETF like XLK?

XLK (stock_2) has a dividend yield of 0.43% and high concentration in its top holdings, specifically NVDA and AAPL. If these specific companies underperform due to regulatory issues, earnings misses, or sector downturns, the fund's overall performance will suffer more than a diversified index fund. This 'specific stock risk' means the fund's fate is tied tightly to the success of a few mega-cap technology firms, rather than the broader market.

Is QQQM or XLK better for a beginner investor?

The choice depends on the beginner's goals. QQQM (stock_1) offers broader exposure to large-growth companies beyond just technology, potentially providing a slight cushion against a tech-specific downturn. XLK (stock_2) is for those who specifically want technology sector exposure. Beginners should consider that QQQM's inclusion of non-tech giants like AMZN or COST (implied by category, though strictly adhering to data: AMZN is listed) makes it less purely tech-focused than XLK.

What does 'Sector weights: not available' imply for this data?

For both QQQM (stock_1) and XLK (stock_2), the 'Sector weights' data point is explicitly marked as 'not available' in the source information. This means we cannot quantitatively break down the exact percentage of assets in Industrials, Healthcare, or Consumer Discretionary for QQQM, nor can we see if XLK holds any non-tech assets (though it is categorised as Technology). We must rely on the 'Category' label and top holdings for qualitative assessment.

How should I interpret the comparison data provided?

This comparison highlights key metrics: expense ratios, asset size, yield, and top holdings. It shows XLK is cheaper (0.08% vs 0.15%) and older (1998 vs 2020). QQQM has a lower concentration in its top holdings. Understanding these numbers helps in assessing cost, liquidity, and risk profile. This information is for educational purposes only and does not constitute financial advice. Always conduct your own research or consult a qualified financial adviser before making investment decisions.

QQQM vs XLK

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

This page compares QQQM (Invesco NASDAQ 100 ETF) and XLK (Technology Sector SPDR) by fees, holdings, dividends and how each fund tracks its market. It uses the supplied fund data, including expense ratios of 0.15% and 0.08%. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

QQQM

Metric

XLK

0.15%

Expense Ratio

0.08%

0.43%

Dividend Yield

0.43%

$105.70B

Net Assets

$123.19B

106

Holdings

Oct 13, 2020

Inception Date

Dec 16, 1998

–

Index Tracked

–

Large Growth

Fund Category

Technology

XLK costs about $7.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	QQQM	XLK
NVDANVIDIA Corporation	8.46%	15.53%
AAPLApple Inc.	7.89%	14.16%
MSFTMicrosoft Corporation	5.89%	10.59%
MUMicron Technology, Inc.	4.85%	4.39%
AMDAdvanced Micro Devices, Inc.	3.91%	4.78%

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Investment Analysis

QQQM

Pros

QQQM offers a modest expense ratio of 0.15% for broad Nasdaq-100 exposure.
It holds substantial net assets of $105.7 billion, indicating strong investor demand.
The fund provides diversified access to large-growth companies including technology and consumer sectors.

Considerations

Recent inception in October 2020 limits the fund's long-term track record.
The dividend yield of 0.43% may disappoint income-focused investors seeking regular payouts.
Concentration in growth sectors exposes holdings to potential volatility in tech and consumer stocks.

XLK

Pros

XLK delivers technology sector exposure at a low expense ratio of 0.08%.
It maintains significant net assets of $123.2 billion, supporting robust liquidity for trading.
The fund's inception date in December 1998 provides a comprehensive performance history.

Considerations

A dividend yield of 0.43% reflects minimal income generation from the portfolio.
High concentration in top holdings like NVDA and AAPL increases specific stock risk.
Lack of sector weights data hinders clear assessment of diversification beyond technology.

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About QQQM and XLK

QQQM (QQQM)

The Invesco NASDAQ 100 ETF (QQQM) aims to track the performance of the Nasdaq 100 Index, offering investors exposure to a concentrated basket of large-cap growth companies. As a cost-effective version of the well-known Nasdaq exposure, it typically features lower fees than its larger sibling, making it an attractive option for buy-and-hold strategies. The fund holds approximately 106 companies, heavily weighted towards the technology sector, but also including consumer services, health care, and industrials. With net assets exceeding $105 billion, it provides deep liquidity. While historically associated with strong growth during bullish market periods, investors should remember that the underlying companies are subject to market volatility. Values can rise and fall, and returns are not guaranteed. It suits those seeking broad exposure to major US tech and growth innovators, rather than personalised financial advice.

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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QQQM vs XLK

Fund Snapshot