The Invesco QQQ Trust (NASDAQ:QQQ) and the Technology Select Sector SPDR Fund (NYSEARCA:XLK) are two of the biggest and best-known technology ETFs out there. They’ve also been two of the market’s best ETFs to own over the past decade. With the tech sector surging in 2023, both have posted excellent total returns in 2023 so far, with QQQ up 40.8% and XLK up 41.3%. So, what’s the difference between these top tech ETFs, and is one better than the other?
What are QQQ and XLK’s Strategies?
While these are both tech-centric ETFs, their investment universes are somewhat different. QQQ invests in the Nasdaq 100 Index, the largest 100 non-financial stocks in the Nasdaq (NDX). Meanwhile, XLK invests in the technology sector of the S&P 500 (SPX).
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.