MAGY vs QQQ
Roundhill Magnificent Seven Covered Call 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 | MAGY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.99% | 0.18% | |
| AUM | $114M | $496.3B | |
| Dividend Yield | 39.83% | 0.44% | |
| Holdings | 4 | 108 | |
| YTD Return | -14.93% | +16.64% | |
| 1Y Return | -7.76% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 18.6% | 30.6% | |
| Max Drawdown | -20.0% | -83.0% | |
| Fund Family | Roundhill Investments | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Apr 23, 2025 | Mar 10, 1999 |
MAGY vs QQQ Performance
Roundhill Magnificent Seven Covered Call ETF (MAGY) is a ETF from Roundhill Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MAGY returned -7.76% while QQQ returned +27.27%. Year to date, MAGY is down 14.93% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 18.6% for MAGY. 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 -20.0% for MAGY 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MAGY charges 0.99% per year while QQQ charges 0.18%. On a $10,000 position that is $99 vs $18 annually, a gap of $81 per year that compounds over a long holding period. On income, MAGY currently yields 39.83% against 0.44% for QQQ.
Holdings Overlap
MAGY and QQQ share 0 holdings out of 104 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MAGY or QQQ?
MAGY has an expense ratio of 0.99% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $81 per year of difference.
Which performed better, MAGY or QQQ?
Over the past year MAGY returned -7.76% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), MAGY annualized +9.61% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, MAGY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.6% for MAGY. Worst drawdown: MAGY -20.0% vs QQQ -83.0%.
Should I hold both MAGY and QQQ?
MAGY and QQQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MAGY and QQQ?
MAGY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, MAGY or QQQ?
MAGY yields 39.83% while QQQ yields 0.44%, so MAGY currently pays the higher dividend yield.
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