BOXX vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricBOXXQQQWinner
Expense Ratio0.19%0.18%
AUM$13.2B$455.8B
Dividend Yield0.00%0.41%
Holdings10108
YTD Return+2.34%+18.31%
1Y Return+4.08%+25.37%
3Y Return (annualized)+4.70%+25.79%
5Y Return (annualized)-+15.20%
Volatility (annualized)0.3%30.6%
Max Drawdown-0.1%-83.0%
Fund FamilyAlpha ArchitectInvesco (US)
CategoryAlternativeEquity
InceptionDec 28, 2022Mar 10, 1999

BOXX vs QQQ Performance

Alpha Architect 1-3 Month Box ETF (BOXX) is a ETF from Alpha Architect and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year BOXX returned +4.08% while QQQ returned +25.37%. Year to date, BOXX is up 2.34% versus a gain of 18.31% for QQQ.

Over three years, BOXX compounded at +4.70% per year against +25.79% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.10% annualized vs +4.70%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 0.3% for BOXX. 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 -0.1% for BOXX 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 -0.26. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BOXX charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, BOXX currently yields 0.00% against 0.41% for QQQ.

Frequently Asked Questions

Which is cheaper, BOXX or QQQ?

BOXX has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, BOXX or QQQ?

Over the past year BOXX returned +4.08% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), BOXX annualized +4.70% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, BOXX or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 0.3% for BOXX. Worst drawdown: BOXX -0.1% vs QQQ -83.0%.

Should I hold both BOXX and QQQ?

BOXX and QQQ have a monthly-return correlation of -0.26, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, BOXX or QQQ?

BOXX yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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