NIXT vs QQQ

Quick Verdict

QQQ has a lower expense ratio. NIXT delivered stronger 1-year returns. NIXT offers more diversification with 153 holdings.

Lower Fees: QQQHigher Returns: NIXTMore Diversified: NIXT

Side-by-Side Comparison

MetricNIXTQQQWinner
Expense Ratio0.19%0.18%
AUM$41M$455.8B
Dividend Yield0.96%0.41%
Holdings156108
YTD Return+29.31%+18.31%
1Y Return+40.46%+25.37%
3Y Return (annualized)-+25.79%
5Y Return (annualized)-+15.20%
Volatility (annualized)16.1%30.6%
Max Drawdown-27.5%-83.0%
Fund FamilyRAFI IndicesInvesco (US)
CategoryEquityEquity
InceptionSep 9, 2024Mar 10, 1999

NIXT vs QQQ Performance

Research Affiliates Deletions ETF (NIXT) is a ETF from RAFI Indices and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NIXT returned +40.46% while QQQ returned +25.37%. Year to date, NIXT is up 29.31% versus a gain of 18.31% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 16.1% for NIXT. 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 -27.5% for NIXT 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NIXT charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, NIXT currently yields 0.96% against 0.41% for QQQ.

Holdings Overlap

0.3%overlap

NIXT and QQQ share 1 holdings out of 255 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in NIXTWeight in QQQDifference
LITE7.28%0.26%7.02%

Frequently Asked Questions

Which is cheaper, NIXT or QQQ?

NIXT has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, NIXT or QQQ?

Over the past year NIXT returned +40.46% vs +25.37% for QQQ, so NIXT leads on 1-year performance. Over the longest common window we track (2 years), NIXT annualized +21.40% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, NIXT or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 16.1% for NIXT. Worst drawdown: NIXT -27.5% vs QQQ -83.0%.

Should I hold both NIXT and QQQ?

NIXT and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NIXT and QQQ?

NIXT and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 255 unique securities.

Which pays a higher dividend, NIXT or QQQ?

NIXT yields 0.96% while QQQ yields 0.41%, so NIXT currently pays the higher dividend yield.

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