Should I always go for Performance (FPS) mode on XSX with a 1080p monitor?

Thinking about getting an Xbox series X I've only got this 60HZ 1080p monitor, I suppose it doesn't make sense to go for quality mode if it's rendering at an original resolution that's higher than 1080p. But will the other visual qualities will be downgraded/ removed? Are most gaming allowing turning on ray tracing at performance mode?