ISEP vs QQQ
Innovator International Developed Power Buffer ETF - September vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | ISEP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.18% | |
| AUM | $64M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 6 | 108 | |
| YTD Return | +8.34% | +16.23% | |
| 1Y Return | +11.48% | +26.23% | |
| 3Y Return (annualized) | +12.53% | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 7.5% | 30.6% | |
| Max Drawdown | -7.4% | -83.0% | |
| Fund Family | Innovator ETFs Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 1, 2023 | Mar 10, 1999 |
ISEP vs QQQ Performance
Innovator International Developed Power Buffer ETF - September (ISEP) is a ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ISEP returned +11.48% while QQQ returned +26.23%. Year to date, ISEP is up 8.34% versus a gain of 16.23% for QQQ.
Over three years, ISEP compounded at +12.53% per year against +25.75% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.02% annualized vs +12.53%. 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 7.5% for ISEP. 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 -7.4% for ISEP 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ISEP charges 0.85% per year while QQQ charges 0.18%. On a $10,000 position that is $85 vs $18 annually, a gap of $67 per year that compounds over a long holding period. On income, ISEP currently yields 0.00% against 0.44% for QQQ.
Frequently Asked Questions
Which is cheaper, ISEP or QQQ?
ISEP has an expense ratio of 0.85% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, ISEP or QQQ?
Over the past year ISEP returned +11.48% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), ISEP annualized +12.53% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, ISEP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.5% for ISEP. Worst drawdown: ISEP -7.4% vs QQQ -83.0%.
Should I hold both ISEP and QQQ?
ISEP and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, ISEP or QQQ?
ISEP yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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