QDEF vs QQQ
Northern Trust Quality Dividend Defensive ETF vs Invesco QQQ Trust, Series 1
Which is better, QDEF or QQQ?
Large Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QDEF is less concentrated, with 38.4% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QDEF | QQQ |
|---|---|---|
| Expense Ratio | 0.39% | 0.18%Best |
| AUM | $555M | $483.5B |
| Dividend Yield | 1.54% | 0.44% |
| Holdings | 137 | 107 |
| YTD Return | +12.23% | +16.87%Best |
| 1Y Return | +15.57% | +22.98%Best |
| 3Y Return (annualized) | +19.54% | +24.98%Best |
| 5Y Return (annualized) | +12.63% | +14.39%Best |
| Volatility (annualized) | 13.4%Best | 17.6% |
| Max Drawdown | -36.2% | -35.1%Best |
| $10,000 over 5 years | $18,125 | $19,586Best |
| Top 10 Weight | 38.4%Best | 46.5% |
| Fund Family | Northern Trust Asset Management | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Dec 14, 2012 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Dec 19, 2012 to Sep 11, 2026 (13.7 years).
QDEF vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 13.7 years both funds cover.
QDEF vs QQQ Performance
Northern Trust Quality Dividend Defensive ETF (QDEF) is an ETF from Northern Trust Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year QDEF returned +15.57% while QQQ returned +22.98%. Year to date, QDEF is up 12.23% versus a gain of 16.87% for QQQ.
Over three years, QDEF compounded at +19.54% per year against +24.98% for QQQ; over five years the annualized figures are +12.63% and +14.39% respectively. Across the full 14-year window we track, QQQ has the edge at +19.20% annualized vs +10.56%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.6% compared with 13.4% for QDEF. 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 -36.2% for QDEF and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QDEF charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, QDEF currently yields 1.54% against 0.44% for QQQ.
Holdings Overlap
40.7% of QDEF's money is in holdings QQQ also owns. 44.6% of QQQ's money is in holdings QDEF also owns.
The two portfolios partly overlap.
21 positions in common, counted across the 133 positions we hold weights for in QDEF and 102 in QQQ, against full books of 137 and 107.
What only one of them owns
Our book lists 74 positions for QQQ that do not appear in our book for QDEF (52.4% of the fund), and 110 for QDEF that do not appear in QQQ (56.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QDEF | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 6.91% | 8.44% | 1.53% |
| AAPLApple, Inc | 7.88% | 7.27% | 0.61% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 4.15% | 5.76% | 1.61% |
| AVGOBroadcom Inc | 4.82% | 3.16% | 1.66% |
| GOOGLAlphabet A Usd 0.001 | 2.30% | 3.36% | 1.06% |
| GOOGAlphabet Inc | 1.84% | 3.13% | 1.29% |
| CSCOCisco Systems Inc. - Ordinary Shares | 2.35% | 2.10% | 0.25% |
| LRCXLam Research Corp 3.125 06/15/2060 | 1.46% | 1.69% | 0.23% |
| KLACKla Corp. | 1.86% | 1.11% | 0.75% |
| COSTCostco Wholesale Corp. | 0.16% | 1.84% | 1.68% |
44.6% of QQQ is already inside QDEF.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QDEF or QQQ?
QDEF has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, QDEF or QQQ?
Over the past year QDEF returned +15.57% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), QDEF annualized +10.56% vs +19.20% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QDEF or QQQ?
QQQ has been the more volatile fund at 17.6% annualized versus 13.4% for QDEF. Worst drawdown: QDEF -36.2% vs QQQ -35.1%.
Should I hold both QDEF and QQQ?
QDEF and QQQ have a monthly-return correlation of 0.79, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QDEF and QQQ?
44.6% of QQQ's money is in holdings QDEF also owns. 44.6% of QQQ's is in holdings QDEF also owns. They hold 21 positions in common, counted across the 133 positions we hold weights for in QDEF and 102 in QQQ.
Which pays a higher dividend, QDEF or QQQ?
QDEF yields 1.54% while QQQ yields 0.44%, so QDEF currently pays the higher dividend yield.
Is QQQ better than QDEF?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QDEF is less concentrated, with 38.4% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.