LIVE
XLC
Communication Services Select Sector SPDR Fund · ETF / Sector Fund
$109.45
-5.52% this month
VERSUS
⟷
COMPARE
QQQ
Invesco QQQ Trust · ETF / Nasdaq-100 Index
$740.62
+5.57% this month
Scoreboard verdict
Across expense ratio, momentum, yield, fund size, risk
XLC
3
QQQ
2
Comparison scoreboard
XLC LEADS 3/5Exp. Ratio
XLC ✓0.08%
QQQ 0.18%
1Y Return
XLC +7.09%
QQQ ✓+40.68%
Div. Yield
XLC ✓1.21%
QQQ 0.38%
AUM
XLC $25.12B
QQQ ✓$493.99B
Beta
XLC ✓0.98
QQQ 1.23
Metrics last refreshed: 6/20/2026
Quick take
XLC vs QQQ Stock Comparison: AI Score, Valuation, Performance and Upside
XLC and QQQ both provide significant exposure to Alphabet and Meta (both are top holdings in each ETF) but with different portfolios. QQQ is broader with more technology companies (Apple, Nvidia, Microsoft, Amazon) and no telecom stocks. XLC is narrower, concentrating on communication services including telecom (AT&T, Verizon) and streaming/entertainment that QQQ excludes. QQQ has dramatically outperformed XLC since XLC's 2018 inception due to Nvidia, Apple, and Microsoft performance.
XLC vs QQQ — XLC (the S&P 500 Communication Services sector ETF with concentrated Alphabet/Meta internet advertising exposure plus Netflix, Disney, AT&T, and Verizon in a single sector classification) versus QQQ (the Nasdaq-100 ETF with mega-cap technology concentration in Apple, Microsoft, Nvidia, Amazon, Meta, and Alphabet driving long-term technology sector outperformance of the S&P 500).
Live analysis · updated 6/20/2026
XLC holds the edge across 3 of 5 key metrics in this comparison. QQQ has delivered stronger 1-year price return (+40.68% vs +7.09% for XLC).
Normalized 1Y performance
XLC
QQQ
Recent returns
XLC
QQQ
Who should consider this stock?
XLC may suit investors who:
- →want pure communication services sector exposure including internet advertising (Google, Meta), streaming (Netflix, Disney), and telecom (AT&T, Verizon) in a single low-cost sector ETF
- →see Alphabet and Meta's digital advertising duopoly as a specific conviction position that XLC enables within an overall portfolio
- →value the streaming and entertainment exposure (Netflix, Disney) in the same ETF as internet advertising — convenient single-ETF communication services positioning
- →are comfortable with extreme top-2 concentration (Alphabet + Meta = 45-50% of fund), telecom drag on returns, and streaming business model uncertainty affecting the entertainment names in XLC
QQQ may suit investors who:
- →want maximum technology sector exposure with Apple, Nvidia, Microsoft, Amazon, Meta, and Alphabet — the most dominant technology companies in one ETF
- →value QQQ's 20-year track record of significant S&P 500 outperformance driven by technology sector earnings growth compounding
- →see QQQ as a broad technology ETF rather than a narrow sector bet — the Nasdaq-100's 100 holdings provide more diversification than XLC's sector-specific portfolio
- →are comfortable with 0.20% expense ratio vs cheap broad market alternatives, technology concentration risk, and no financial sector exposure
Performance & AI score
| Metric | XLC | QQQ |
|---|---|---|
| ETF score | 50.0 | 84.0 |
| Latest close | $109.45 | $740.62 |
| 1M return | -5.52% | +5.57% |
| 6M return | -4.88% | +23.67% |
| 1Y return | +7.09% | +40.68% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | XLC | QQQ |
|---|---|---|
| 1Y ago | $10.84K (+8.4%) started 2025-06-18 | $14.14K (+41.4%) started 2025-06-18 |
| 5Y ago | $15.43K (+54.3%) started 2021-06-18 | $22.96K (+129.6%) started 2021-06-18 |
| 10Y ago | $25.55K (+155.5%) started 2018-06-19 | $79.38K (+693.8%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Fund characteristics
| Metric | XLC | QQQ |
|---|---|---|
| Expense ratio | 0.08% | 0.18% |
| Total assets (AUM) | $25.12B | $493.99B |
| Dividend yield | 1.21% | 0.38% |
| Trailing P/E | 16.65 | 34.00 |
| Beta | 0.98 | 1.23 |
| 52-week change | 7.09% | 40.68% |
Risk & fund metrics
| Metric | XLC | QQQ |
|---|---|---|
| 1Y return | +7.09% | +40.68% |
| 6M return | -4.88% | +23.67% |
| 1M return | -5.52% | +5.57% |
| 1Y Sharpe ratio | 0.24 | 1.78 |
| Beta | 0.98 | 1.23 |
| Dividend yield | 1.21% | 0.38% |
| 5Y CAGR | +7.94% | +17.37% |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
XLC max drawdown10.57%
QQQ max drawdown11.96%
XLC max wkly drop4.32%
QQQ max wkly drop6.79%
5Y risk snapshot
XLC max drawdown46.65%
QQQ max drawdown35.12%
XLC max wkly drop11.04%
QQQ max wkly drop11.98%
10Y risk snapshot
XLC max drawdown46.65%
QQQ max drawdown35.12%
XLC max wkly drop16.41%
QQQ max wkly drop16.20%
Performance metrics by period
| Period | Metric | XLC | QQQ |
|---|---|---|---|
| 1Y | Growth | +7.09% | +40.68% |
| CAGR | +7.10% | +40.72% | |
| Sharpe ratio | 0.24 | 1.78 | |
| Max drawdown | 10.57% | 11.96% | |
| Max daily drop | 2.78% | 4.80% | |
| Max wkly drop | 4.32% | 6.79% | |
| 5Y | Growth | +46.52% | +122.74% |
| CAGR | +7.94% | +17.37% | |
| Sharpe ratio | 0.26 | 0.63 | |
| Max drawdown | 46.65% | 35.12% | |
| Max daily drop | 6.69% | 6.21% | |
| Max wkly drop | 11.04% | 11.98% | |
| 10Y | Growth | +136.27% | +639.84% |
| CAGR | +11.35% | +22.17% | |
| Sharpe ratio | 0.39 | 0.81 | |
| Max drawdown | 46.65% | 35.12% | |
| Max daily drop | 11.28% | 11.98% | |
| Max wkly drop | 16.41% | 16.20% |
Fund overview
| Category | XLC | QQQ |
|---|---|---|
| Fund name | State Street Communication Services Select Sector SPDR ETF | Invesco QQQ Trust |
| Type | ETF | ETF |
| Expense ratio | 0.08% | 0.18% |
| Total assets (AUM) | $25.12B | $493.99B |
| Dividend yield | 1.21% | 0.38% |
XLC strengths
- →Direct exposure to internet advertising duopoly: Alphabet and Meta represent 45-50% of XLC — providing concentrated exposure to the world's two dominant digital advertising platforms
- →Entertainment and streaming diversification: Netflix, Disney, and gaming companies provide media sector exposure within XLC's communication services classification
- →Low expense ratio: XLC's 0.09% expense ratio provides efficient sector exposure
QQQ strengths
- →Mega-cap technology concentration: QQQ's top 10 holdings (Apple, Microsoft, Nvidia, Amazon, Meta, Tesla, Alphabet, Broadcom, ASML, Costco) are the world's most valuable and profitable technology companies
- →Long-term outperformance of S&P 500: QQQ has significantly outperformed the S&P 500 over 10-20 year periods driven by technology sector's exceptional earnings growth
- →Automatic reconstitution: Nasdaq-100 reconstitution process maintains quality by adding the most valuable companies and removing underperformers — portfolio quality is maintained without active management
Risks to watch — XLC
- →Extreme concentration in Alphabet and Meta: 45-50% in two stocks means XLC's performance largely tracks these two companies — minimal true diversification benefit despite holding 20+ stocks
- →Telecom drag: AT&T and Verizon provide low-growth dividend income but dilute returns from the high-growth internet businesses in the same ETF — the sector classification mix creates portfolio dilution
- →Streaming profitability uncertainty: Netflix and Disney streaming unit economics continue evolving — subscriber growth, advertising tier, and content investment decisions materially affect ETF performance
Risks to watch — QQQ
- →Higher expense ratio vs VOO/IVV: QQQ charges 0.20% vs 0.03% for broad market ETFs — the fee disadvantage compounds over decades
- →Extreme technology concentration: top 10 stocks represent 55-60% of QQQ — in a technology sector correction, QQQ falls much more than the S&P 500
- →No financial sector exposure: QQQ excludes financial companies — in cycles where banks and financial services outperform, QQQ underperforms broad market ETFs that include financials
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