KLMT vs QQQ
Invesco MSCI Global Climate 500 ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
KLMT has a lower expense ratio. QQQ delivered stronger 1-year returns. KLMT offers more diversification with 517 holdings.
Side-by-Side Comparison
| Metric | KLMT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $1.6B | $496.3B | |
| Dividend Yield | 1.77% | 0.44% | |
| Holdings | 517 | 108 | |
| YTD Return | +15.14% | +19.52% | |
| 1Y Return | +22.90% | +26.68% | |
| 3Y Return (annualized) | - | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 11.1% | 30.6% | |
| Max Drawdown | -16.9% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 26, 2024 | Mar 10, 1999 |
KLMT vs QQQ Performance
Invesco MSCI Global Climate 500 ETF (KLMT) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KLMT returned +22.90% while QQQ returned +26.68%. Year to date, KLMT is up 15.14% versus a gain of 19.52% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 11.1% for KLMT. 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 -16.9% for KLMT 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KLMT charges 0.10% per year while QQQ charges 0.18%. On a $10,000 position that is $10 vs $18 annually, a gap of $8 per year that compounds over a long holding period. On income, KLMT currently yields 1.77% against 0.44% for QQQ.
Holdings Overlap
KLMT and QQQ share 81 holdings out of 518 unique holdings combined, representing a 35.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KLMT or QQQ?
KLMT has an expense ratio of 0.10% while QQQ charges 0.18%. KLMT is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, KLMT or QQQ?
Over the past year KLMT returned +22.90% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), KLMT annualized +19.60% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, KLMT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.1% for KLMT. Worst drawdown: KLMT -16.9% vs QQQ -83.0%.
Should I hold both KLMT and QQQ?
KLMT and QQQ have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KLMT and QQQ?
KLMT and QQQ share 81 common holdings with a 35.6% weight overlap. Combined, they hold 518 unique securities.
Which pays a higher dividend, KLMT or QQQ?
KLMT yields 1.77% while QQQ yields 0.44%, so KLMT currently pays the higher dividend yield.
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