CZA 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

MetricCZAQQQWinner
Expense Ratio0.69%0.18%
AUM$189M$455.8B
Dividend Yield1.41%0.41%
Holdings104108
YTD Return+13.94%+18.31%
1Y Return+20.19%+25.37%
3Y Return (annualized)+13.75%+25.79%
5Y Return (annualized)+7.43%+15.20%
Volatility (annualized)16.6%30.6%
Max Drawdown-53.2%-83.0%
Fund FamilyInvesco (US)Invesco (US)
CategoryEquityEquity
InceptionApr 2, 2007Mar 10, 1999

CZA vs QQQ Performance

Invesco Zacks Mid-Cap ETF (CZA) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CZA returned +20.19% while QQQ returned +25.37%. Year to date, CZA is up 13.94% versus a gain of 18.31% for QQQ.

Over three years, CZA compounded at +13.75% per year against +25.79% for QQQ; over five years the annualized figures are +7.43% and +15.20% respectively. Across the full 19-year window we track, QQQ has the edge at +13.10% annualized vs +9.76%. 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 16.6% for CZA. 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 -53.2% for CZA 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

CZA charges 0.69% per year while QQQ charges 0.18%. On a $10,000 position that is $69 vs $18 annually, a gap of $51 per year that compounds over a long holding period. On income, CZA currently yields 1.41% against 0.41% for QQQ.

Holdings Overlap

0.3%overlap

CZA and QQQ share 2 holdings out of 203 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in CZAWeight in QQQDifference
ROP1.66%0.16%1.50%
GEHC1.38%0.13%1.25%

Frequently Asked Questions

Which is cheaper, CZA or QQQ?

CZA has an expense ratio of 0.69% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, CZA or QQQ?

Over the past year CZA returned +20.19% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), CZA annualized +9.76% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, CZA or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 16.6% for CZA. Worst drawdown: CZA -53.2% vs QQQ -83.0%.

Should I hold both CZA and QQQ?

CZA and QQQ have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CZA and QQQ?

CZA and QQQ share 2 common holdings with a 0.3% weight overlap. Combined, they hold 203 unique securities.

Which pays a higher dividend, CZA or QQQ?

CZA yields 1.41% while QQQ yields 0.41%, so CZA currently pays the higher dividend yield.

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