AQLT vs QQQ
iShares MSCI Global Quality Factor ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. AQLT offers more diversification with 521 holdings.
Side-by-Side Comparison
| Metric | AQLT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.18% | |
| AUM | $331M | $496.3B | |
| Dividend Yield | 1.01% | 0.44% | |
| Holdings | 521 | 108 | |
| YTD Return | +12.79% | +16.64% | |
| 1Y Return | +24.19% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 13.0% | 30.6% | |
| Max Drawdown | -16.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 11, 2024 | Mar 10, 1999 |
AQLT vs QQQ Performance
iShares MSCI Global Quality Factor ETF (AQLT) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AQLT returned +24.19% while QQQ returned +27.27%. Year to date, AQLT is up 12.79% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.0% for AQLT. 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 -16.8% for AQLT and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AQLT charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, AQLT currently yields 1.01% against 0.44% for QQQ.
Holdings Overlap
AQLT and QQQ share 43 holdings out of 523 unique holdings combined, representing a 40.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AQLT or QQQ?
AQLT has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, AQLT or QQQ?
Over the past year AQLT returned +24.19% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), AQLT annualized +16.53% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, AQLT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.0% for AQLT. Worst drawdown: AQLT -16.8% vs QQQ -83.0%.
Should I hold both AQLT and QQQ?
AQLT and QQQ have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AQLT and QQQ?
AQLT and QQQ share 43 common holdings with a 40.5% weight overlap. Combined, they hold 523 unique securities.
Which pays a higher dividend, AQLT or QQQ?
AQLT yields 1.01% while QQQ yields 0.44%, so AQLT currently pays the higher dividend yield.
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