NXTI vs QQQ
Simplify Next Intangible Core Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NXTI offers more diversification with 202 holdings.
Side-by-Side Comparison
| Metric | NXTI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $42M | $496.3B | |
| Dividend Yield | 0.56% | 0.44% | |
| Holdings | 202 | 108 | |
| YTD Return | +11.20% | +16.23% | |
| 1Y Return | +16.60% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 13.6% | 30.6% | |
| Max Drawdown | -19.6% | -83.0% | |
| Fund Family | Simplify Exchange Traded Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 15, 2024 | Mar 10, 1999 |
NXTI vs QQQ Performance
Simplify Next Intangible Core Index ETF (NXTI) is a ETF from Simplify Exchange Traded Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NXTI returned +16.60% while QQQ returned +26.23%. Year to date, NXTI is up 11.20% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.6% for NXTI. 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 -19.6% for NXTI 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NXTI charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, NXTI currently yields 0.56% against 0.44% for QQQ.
Holdings Overlap
NXTI and QQQ share 34 holdings out of 269 unique holdings combined, representing a 17.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NXTI or QQQ?
NXTI has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, NXTI or QQQ?
Over the past year NXTI returned +16.60% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), NXTI annualized +18.78% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, NXTI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.6% for NXTI. Worst drawdown: NXTI -19.6% vs QQQ -83.0%.
Should I hold both NXTI and QQQ?
NXTI and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NXTI and QQQ?
NXTI and QQQ share 34 common holdings with a 17.6% weight overlap. Combined, they hold 269 unique securities.
Which pays a higher dividend, NXTI or QQQ?
NXTI yields 0.56% while QQQ yields 0.44%, so NXTI currently pays the higher dividend yield.
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