MAGS vs QQQ
Roundhill Magnificent Seven ETF 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 | MAGS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.18% | |
| AUM | $4.4B | $496.3B | |
| Dividend Yield | 1.48% | 0.44% | |
| Holdings | 25 | 108 | |
| YTD Return | +2.95% | +16.64% | |
| 1Y Return | +15.24% | +27.27% | |
| 3Y Return (annualized) | +31.79% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 21.6% | 30.6% | |
| Max Drawdown | -29.4% | -83.0% | |
| Fund Family | Roundhill Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 11, 2023 | Mar 10, 1999 |
MAGS vs QQQ Performance
Roundhill Magnificent Seven ETF (MAGS) is a ETF from Roundhill Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MAGS returned +15.24% while QQQ returned +27.27%. Year to date, MAGS is up 2.95% versus a gain of 16.64% for QQQ.
Over three years, MAGS compounded at +31.79% per year against +25.96% for QQQ. Across the full 3-year window we track, MAGS has the edge at +35.91% annualized vs +13.03%. 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 21.6% for MAGS. 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 -29.4% for MAGS 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MAGS charges 0.30% per year while QQQ charges 0.18%. On a $10,000 position that is $30 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, MAGS currently yields 1.48% against 0.44% for QQQ.
Holdings Overlap
MAGS and QQQ share 7 holdings out of 104 unique holdings combined, representing a 22.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MAGS or QQQ?
MAGS has an expense ratio of 0.30% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, MAGS or QQQ?
Over the past year MAGS returned +15.24% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), MAGS annualized +35.91% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, MAGS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.6% for MAGS. Worst drawdown: MAGS -29.4% vs QQQ -83.0%.
Should I hold both MAGS and QQQ?
MAGS and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MAGS and QQQ?
MAGS and QQQ share 7 common holdings with a 22.4% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, MAGS or QQQ?
MAGS yields 1.48% while QQQ yields 0.44%, so MAGS currently pays the higher dividend yield.
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