MEGI vs QQQ

MEGI vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricMEGIQQQWinner
Expense Ratio1.87%0.18%
AUM$842M$496.3B
Dividend Yield8.98%0.44%
Holdings64108
YTD Return+14.63%+16.23%
1Y Return+16.73%+26.23%
3Y Return (annualized)+17.43%+25.75%
5Y Return (annualized)-+14.78%
Volatility (annualized)22.9%30.6%
Max Drawdown-39.5%-83.0%
Fund FamilyNew York Life InvestmentsInvesco (US)
CategoryEquityEquity
InceptionOct 27, 2021Mar 10, 1999

MEGI vs QQQ Performance

NYLI CBRE Global Infrastructure Megatrends Term Fund (MEGI) is a ETF from New York Life Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MEGI returned +16.73% while QQQ returned +26.23%. Year to date, MEGI is up 14.63% versus a gain of 16.23% for QQQ.

Over three years, MEGI compounded at +17.43% per year against +25.75% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.02% annualized vs +3.73%. 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 22.9% for MEGI. 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 -39.5% for MEGI 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MEGI charges 1.87% per year while QQQ charges 0.18%. On a $10,000 position that is $187 vs $18 annually, a gap of $169 per year that compounds over a long holding period. On income, MEGI currently yields 8.98% against 0.44% for QQQ.

Holdings Overlap

0.6%overlap

MEGI and QQQ share 2 holdings out of 161 unique holdings combined, representing a 0.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in MEGIWeight in QQQDifference
XEL5.74%0.21%5.53%
CEG4.15%0.42%3.73%

Frequently Asked Questions

Which is cheaper, MEGI or QQQ?

MEGI has an expense ratio of 1.87% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $169 per year of difference.

Which performed better, MEGI or QQQ?

Over the past year MEGI returned +16.73% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), MEGI annualized +3.73% vs +13.02% for QQQ. Past performance does not guarantee future results.

Which is riskier, MEGI or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 22.9% for MEGI. Worst drawdown: MEGI -39.5% vs QQQ -83.0%.

Should I hold both MEGI and QQQ?

MEGI and QQQ have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MEGI and QQQ?

MEGI and QQQ share 2 common holdings with a 0.6% weight overlap. Combined, they hold 161 unique securities.

Which pays a higher dividend, MEGI or QQQ?

MEGI yields 8.98% while QQQ yields 0.44%, so MEGI currently pays the higher dividend yield.

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