ALAI vs QQQ
Alger AI Enablers & Adopters ETF vs Invesco QQQ Trust, Series 1
Which is better, ALAI or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. ALAI led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 54.0%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ALAI | QQQ |
|---|---|---|
| Expense Ratio | 0.58% | 0.18%Best |
| AUM | $1.1B | $483.5B |
| Dividend Yield | 1.21% | 0.44% |
| Holdings | 72 | 107 |
| YTD Return | +20.80%Best | +15.18% |
| 1Y Return | +21.34%Best | +19.65% |
| 3Y Return (annualized) | - | +24.60% |
| 5Y Return (annualized) | - | +13.94% |
| Volatility (annualized) | 25.7% | 17.6%Best |
| Max Drawdown | -29.4% | -22.8%Best |
| $10,000 over 2.4 years | $21,992Best | $16,047 |
| Top 10 Weight | 54.0% | 46.5%Best |
| Fund Family | Alger | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Apr 4, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 2.4 years row, are measured over the window both funds cover: Apr 5, 2024 to Sep 15, 2026 (2.4 years).
ALAI vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.4 years both funds cover.
ALAI vs QQQ Performance
Alger AI Enablers & Adopters ETF (ALAI) is an ETF from Alger and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ALAI returned +21.34% while QQQ returned +19.65%. Year to date, ALAI is up 20.80% versus a gain of 15.18% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ALAI has been the more volatile fund, with annualized monthly volatility of 25.7% compared with 17.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -29.4% for ALAI and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
ALAI charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, ALAI currently yields 1.21% against 0.44% for QQQ.
Holdings Overlap
62.7% of ALAI's money is in holdings QQQ also owns. 50.7% of QQQ's money is in holdings ALAI also owns.
The two portfolios partly overlap.
24 positions in common, counted across the 61 positions we hold weights for in ALAI and 102 in QQQ, against full books of 72 and 107.
What only one of them owns
Our book lists 74 positions for QQQ that do not appear in our book for ALAI (48.3% of the fund), and 28 for ALAI that do not appear in QQQ (20.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in ALAI | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 14.70% | 8.44% | 6.26% |
| MSFTMicrosoft Corp | 8.23% | 5.76% | 2.47% |
| AMZNAmazon.Com Inc | 6.23% | 4.67% | 1.56% |
| AAPLApple, Inc | 2.08% | 7.27% | 5.19% |
| GOOGAlphabet Inc | 3.72% | 3.13% | 0.59% |
| MUMicron Technology, Inc. | 2.18% | 4.43% | 2.25% |
| AVGOBroadcom Inc | 3.22% | 3.16% | 0.06% |
| METAMeta Platforms Inc | 3.60% | 2.78% | 0.82% |
| TSLATesla Inc | 1.69% | 2.56% | 0.87% |
| STXSeagate Technology Holdings Plc | 3.13% | 0.83% | 2.30% |
62.7% of ALAI is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ALAI or QQQ?
ALAI has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option, by $40 a year on a $10,000 investment.
Which performed better, ALAI or QQQ?
Over the past year ALAI returned +21.34% vs +19.65% for QQQ, so ALAI leads on 1-year performance. Over the longest common window we track (2 years), ALAI annualized +38.87% vs +21.78% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ALAI or QQQ?
ALAI has been the more volatile fund at 25.7% annualized versus 17.6% for QQQ. Worst drawdown: ALAI -29.4% vs QQQ -22.8%.
Should I hold both ALAI and QQQ?
ALAI and QQQ have a monthly-return correlation of 0.95, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between ALAI and QQQ?
62.7% of ALAI's money is in holdings QQQ also owns. 50.7% of QQQ's is in holdings ALAI also owns. They hold 24 positions in common, counted across the 61 positions we hold weights for in ALAI and 102 in QQQ.
Which pays a higher dividend, ALAI or QQQ?
ALAI yields 1.21% while QQQ yields 0.44%, so ALAI currently pays the higher dividend yield.
Is QQQ better than ALAI?
QQQ has a lower expense ratio. ALAI led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 54.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.