QLC vs QQQ
FlexShares US Quality Large Cap Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QLC delivered stronger 1-year returns. QLC offers more diversification with 175 holdings.
Side-by-Side Comparison
| Metric | QLC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $1.0B | $455.8B | |
| Dividend Yield | 0.94% | 0.41% | |
| Holdings | 178 | 108 | |
| YTD Return | +14.25% | +17.46% | |
| 1Y Return | +27.31% | +26.02% | |
| 3Y Return (annualized) | +24.24% | +25.51% | |
| 5Y Return (annualized) | +14.61% | +15.12% | |
| Volatility (annualized) | 16.5% | 30.6% | |
| Max Drawdown | -35.9% | -83.0% | |
| Fund Family | Flexshares Trust | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2015 | Mar 10, 1999 |
QLC vs QQQ Performance
FlexShares US Quality Large Cap Index Fund (QLC) is a ETF from Flexshares Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year QLC returned +27.31% while QQQ returned +26.02%. Year to date, QLC is up 14.25% versus a gain of 17.46% for QQQ.
Over three years, QLC compounded at +24.24% per year against +25.51% for QQQ; over five years the annualized figures are +14.61% and +15.12% respectively. Across the full 11-year window we track, QLC has the edge at +14.46% annualized vs +13.08%. 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 16.5% for QLC. 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 -35.9% for QLC 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QLC 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, QLC currently yields 0.94% against 0.41% for QQQ.
Holdings Overlap
QLC and QQQ share 36 holdings out of 242 unique holdings combined, representing a 44.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QLC or QQQ?
QLC 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, QLC or QQQ?
Over the past year QLC returned +27.31% vs +26.02% for QQQ, so QLC leads on 1-year performance. Over the longest common window we track (11 years), QLC annualized +14.46% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, QLC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.5% for QLC. Worst drawdown: QLC -35.9% vs QQQ -83.0%.
Should I hold both QLC and QQQ?
QLC and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QLC and QQQ?
QLC and QQQ share 36 common holdings with a 44.5% weight overlap. Combined, they hold 242 unique securities.
Which pays a higher dividend, QLC or QQQ?
QLC yields 0.94% while QQQ yields 0.41%, so QLC currently pays the higher dividend yield.
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