QLTI vs QQQ
GMO International Quality ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QLTI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $298M | $496.3B | |
| Dividend Yield | 0.60% | 0.44% | |
| Holdings | 38 | 108 | |
| YTD Return | +4.68% | +16.64% | |
| 1Y Return | +10.99% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 13.2% | 30.6% | |
| Max Drawdown | -14.8% | -83.0% | |
| Fund Family | GMO | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 28, 2024 | Mar 10, 1999 |
QLTI vs QQQ Performance
GMO International Quality ETF (QLTI) is a ETF from GMO and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year QLTI returned +10.99% while QQQ returned +27.27%. Year to date, QLTI is up 4.68% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.2% for QLTI. 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 -14.8% for QLTI 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QLTI charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, QLTI currently yields 0.60% against 0.44% for QQQ.
Holdings Overlap
QLTI and QQQ share 1 holdings out of 137 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QLTI | Weight in QQQ | Difference |
|---|---|---|---|
| ASL:AS | 3.70% | 0.68% | 3.02% |
Frequently Asked Questions
Which is cheaper, QLTI or QQQ?
QLTI has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, QLTI or QQQ?
Over the past year QLTI returned +10.99% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QLTI annualized +7.07% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, QLTI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.2% for QLTI. Worst drawdown: QLTI -14.8% vs QQQ -83.0%.
Should I hold both QLTI and QQQ?
QLTI and QQQ have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QLTI and QQQ?
QLTI and QQQ share 1 common holdings with a 0.7% weight overlap. Combined, they hold 137 unique securities.
Which pays a higher dividend, QLTI or QQQ?
QLTI yields 0.60% while QQQ yields 0.44%, so QLTI currently pays the higher dividend yield.
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