MXE vs QQQ
Mexico Equity and Income Fund, Inc 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 103 holdings.
Side-by-Side Comparison
| Metric | MXE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.32% | 0.18% | |
| AUM | $72M | $455.8B | |
| Dividend Yield | 1.44% | 0.41% | |
| Holdings | 30 | 108 | |
| YTD Return | +7.20% | +19.68% | |
| 1Y Return | +23.49% | +26.75% | |
| 3Y Return (annualized) | +11.98% | +26.25% | |
| 5Y Return (annualized) | +3.19% | +15.39% | |
| Volatility (annualized) | 23.6% | 30.6% | |
| Max Drawdown | -58.9% | -83.0% | |
| Fund Family | The Mexico Equity and Income Fund, Inc. | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 15, 1990 | Mar 10, 1999 |
MXE vs QQQ Performance
Mexico Equity and Income Fund, Inc (MXE) is a ETF from The Mexico Equity and Income Fund, Inc. and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MXE returned +23.49% while QQQ returned +26.75%. Year to date, MXE is up 7.20% versus a gain of 19.68% for QQQ.
Over three years, MXE compounded at +11.98% per year against +26.25% for QQQ; over five years the annualized figures are +3.19% and +15.39% respectively. Across the full 13-year window we track, QQQ has the edge at +13.15% annualized vs +1.58%. 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 23.6% for MXE. 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 -58.9% for MXE 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MXE charges 2.32% per year while QQQ charges 0.18%. On a $10,000 position that is $232 vs $18 annually, a gap of $214 per year that compounds over a long holding period. On income, MXE currently yields 1.44% against 0.41% for QQQ.
Holdings Overlap
MXE and QQQ share 0 holdings out of 131 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, MXE or QQQ?
MXE has an expense ratio of 2.32% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $214 per year of difference.
Which performed better, MXE or QQQ?
Over the past year MXE returned +23.49% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), MXE annualized +1.58% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, MXE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.6% for MXE. Worst drawdown: MXE -58.9% vs QQQ -83.0%.
Should I hold both MXE and QQQ?
MXE and QQQ have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MXE and QQQ?
MXE and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 131 unique securities.
Which pays a higher dividend, MXE or QQQ?
MXE yields 1.44% while QQQ yields 0.41%, so MXE currently pays the higher dividend yield.
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