MXI vs QQQ
iShares Global Materials ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. MXI delivered stronger 1-year returns. MXI offers more diversification with 114 holdings.
Side-by-Side Comparison
| Metric | MXI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.18% | |
| AUM | $355M | $496.3B | |
| Dividend Yield | 1.70% | 0.44% | |
| Holdings | 114 | 108 | |
| YTD Return | +16.85% | +17.07% | |
| 1Y Return | +30.54% | +26.39% | |
| 3Y Return (annualized) | +15.58% | +26.08% | |
| 5Y Return (annualized) | +8.33% | +15.18% | |
| Volatility (annualized) | 22.0% | 30.6% | |
| Max Drawdown | -68.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2006 | Mar 10, 1999 |
MXI vs QQQ Performance
iShares Global Materials ETF (MXI) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MXI returned +30.54% while QQQ returned +26.39%. Year to date, MXI is up 16.85% versus a gain of 17.07% for QQQ.
Over three years, MXI compounded at +15.58% per year against +26.08% for QQQ; over five years the annualized figures are +8.33% and +15.18% respectively. Across the full 20-year window we track, QQQ has the edge at +13.05% annualized vs +5.22%. 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 22.0% for MXI. 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 -68.7% for MXI 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
MXI charges 0.37% per year while QQQ charges 0.18%. On a $10,000 position that is $37 vs $18 annually, a gap of $19 per year that compounds over a long holding period. On income, MXI currently yields 1.70% against 0.44% for QQQ.
Holdings Overlap
MXI and QQQ share 1 holdings out of 194 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MXI | Weight in QQQ | Difference |
|---|---|---|---|
| LIN | 8.08% | 1.00% | 7.08% |
Frequently Asked Questions
Which is cheaper, MXI or QQQ?
MXI has an expense ratio of 0.37% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, MXI or QQQ?
Over the past year MXI returned +30.54% vs +26.39% for QQQ, so MXI leads on 1-year performance. Over the longest common window we track (20 years), MXI annualized +5.22% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, MXI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.0% for MXI. Worst drawdown: MXI -68.7% vs QQQ -83.0%.
Should I hold both MXI and QQQ?
MXI and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MXI and QQQ?
MXI and QQQ share 1 common holdings with a 1.0% weight overlap. Combined, they hold 194 unique securities.
Which pays a higher dividend, MXI or QQQ?
MXI yields 1.70% while QQQ yields 0.44%, so MXI currently pays the higher dividend yield.
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