EQL vs QQQ
ALPS Equal Sector Weight ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. EQL offers more diversification with 495 holdings.
Side-by-Side Comparison
| Metric | EQL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.18% | |
| AUM | $758M | $455.8B | |
| Dividend Yield | 1.76% | 0.41% | |
| Holdings | 12 | 108 | |
| YTD Return | +12.50% | +17.85% | |
| 1Y Return | +19.86% | +26.45% | |
| 3Y Return (annualized) | +16.03% | +26.07% | |
| 5Y Return (annualized) | +10.91% | +15.16% | |
| Volatility (annualized) | 13.6% | 30.6% | |
| Max Drawdown | -36.4% | -83.0% | |
| Fund Family | ALPS Advisors | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 6, 2009 | Mar 10, 1999 |
EQL vs QQQ Performance
ALPS Equal Sector Weight ETF (EQL) is a ETF from ALPS Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EQL returned +19.86% while QQQ returned +26.45%. Year to date, EQL is up 12.50% versus a gain of 17.85% for QQQ.
Over three years, EQL compounded at +16.03% per year against +26.07% for QQQ; over five years the annualized figures are +10.91% and +15.16% respectively. Across the full 17-year window we track, QQQ has the edge at +13.09% annualized vs +12.12%. 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 13.6% for EQL. 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 -36.4% for EQL 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EQL charges 0.27% per year while QQQ charges 0.18%. On a $10,000 position that is $27 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, EQL currently yields 1.76% against 0.41% for QQQ.
Holdings Overlap
EQL and QQQ share 91 holdings out of 507 unique holdings combined, representing a 28.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EQL or QQQ?
EQL has an expense ratio of 0.27% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, EQL or QQQ?
Over the past year EQL returned +19.86% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), EQL annualized +12.12% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, EQL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.6% for EQL. Worst drawdown: EQL -36.4% vs QQQ -83.0%.
Should I hold both EQL and QQQ?
EQL and QQQ have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EQL and QQQ?
EQL and QQQ share 91 common holdings with a 28.4% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, EQL or QQQ?
EQL yields 1.76% while QQQ yields 0.41%, so EQL currently pays the higher dividend yield.
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