QQQ vs QTUM
Invesco QQQ Trust, Series 1 vs Defiance Quantum ETF
Quick Verdict
QQQ has a lower expense ratio. QTUM delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | QTUM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.40% | |
| AUM | $496.3B | $5.8B | |
| Dividend Yield | 0.44% | 0.83% | |
| Holdings | 108 | 87 | |
| YTD Return | +15.47% | +31.23% | |
| 1Y Return | +24.44% | +58.54% | |
| 3Y Return (annualized) | +25.47% | +45.67% | |
| 5Y Return (annualized) | +14.22% | +25.15% | |
| Volatility (annualized) | 30.6% | 26.2% | |
| Max Drawdown | -83.0% | -38.5% | |
| Fund Family | Invesco (US) | Defiance ETFs, LLC | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Sep 4, 2018 |
QQQ vs QTUM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Defiance Quantum ETF (QTUM) is a ETF from Defiance ETFs, LLC. Over the past year QQQ returned +24.44% while QTUM returned +58.54%. Year to date, QQQ is up 15.47% versus a gain of 31.23% for QTUM.
Over three years, QQQ compounded at +25.47% per year against +45.67% for QTUM; over five years the annualized figures are +14.22% and +25.15% respectively. Across the full 8-year window we track, QTUM has the edge at +25.88% annualized vs +12.99%. 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 26.2% for QTUM. 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 -83.0% for QQQ and -38.5% for QTUM. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while QTUM charges 0.40%. On a $10,000 position that is $18 vs $40 annually, a gap of $22 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.83% for QTUM.
Holdings Overlap
QQQ and QTUM share 29 holdings out of 160 unique holdings combined, representing a 23.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or QTUM?
QQQ has an expense ratio of 0.18% while QTUM charges 0.40%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, QQQ or QTUM?
Over the past year QQQ returned +24.44% vs +58.54% for QTUM, so QTUM leads on 1-year performance. Over the longest common window we track (8 years), QQQ annualized +12.99% vs +25.88% for QTUM. Past performance does not guarantee future results.
Which is riskier, QQQ or QTUM?
QQQ has been the more volatile fund at 30.6% annualized versus 26.2% for QTUM. Worst drawdown: QQQ -83.0% vs QTUM -38.5%.
Should I hold both QQQ and QTUM?
QQQ and QTUM have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and QTUM?
QQQ and QTUM share 29 common holdings with a 23.5% weight overlap. Combined, they hold 160 unique securities.
Which pays a higher dividend, QQQ or QTUM?
QQQ yields 0.44% while QTUM yields 0.83%, so QTUM currently pays the higher dividend yield.
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