QQQ vs QUAL
Invesco QQQ Trust, Series 1 vs iShares MSCI USA Quality Factor ETF
Which is better, QQQ or QUAL?
Large Cap Growth against Large Cap Blend.
QUAL has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QUAL is less concentrated, with 43.9% 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 | QQQ | QUAL |
|---|---|---|
| Expense Ratio | 0.18% | 0.15%Best |
| AUM | $483.5B | $47.3B |
| Dividend Yield | 0.44% | 0.86% |
| Holdings | 107 | 130 |
| YTD Return | +16.87%Best | +10.78% |
| 1Y Return | +22.98%Best | +15.83% |
| 3Y Return (annualized) | +24.98%Best | +18.32% |
| 5Y Return (annualized) | +14.39%Best | +10.97% |
| Volatility (annualized) | 17.9% | 14.6%Best |
| Max Drawdown | -35.1% | -34.1%Best |
| $10,000 over 5 years | $19,586Best | $16,828 |
| Top 10 Weight | 46.5% | 43.9%Best |
| Fund Family | Invesco (US) | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Jul 16, 2013 |
Volatility and max drawdown are measured over the window both funds cover: Jul 18, 2013 to Sep 11, 2026 (13.1 years).
QQQ vs QUAL 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 13.1 years both funds cover.
QQQ vs QUAL Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and iShares MSCI USA Quality Factor ETF (QUAL) is an ETF from iShares by BlackRock (US). Over the past year QQQ returned +22.98% while QUAL returned +15.83%. Year to date, QQQ is up 16.87% versus a gain of 10.78% for QUAL.
Over three years, QQQ compounded at +24.98% per year against +18.32% for QUAL; over five years the annualized figures are +14.39% and +10.97% respectively. Across the full 13-year window we track, QQQ has the edge at +18.95% annualized vs +12.46%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.9% compared with 14.6% for QUAL. 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 -35.1% for QQQ and -34.1% for QUAL. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while QUAL charges 0.15%. On a $10,000 position that is $18 vs $15 annually, a gap of $3 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.86% for QUAL.
Holdings Overlap
50.0% of QQQ's money is in holdings QUAL also owns. 53.3% of QUAL's money is in holdings QQQ also owns.
The two portfolios partly overlap.
34 positions in common, counted across the 102 positions we hold weights for in QQQ and 125 in QUAL, against full books of 107 and 130.
What only one of them owns
Our book lists 89 positions for QUAL that do not appear in our book for QQQ (46.2% of the fund), and 61 for QQQ that do not appear in QUAL (47.1%).
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 QQQ | Weight in QUAL | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 8.44% | 6.23% | 2.21% |
| AAPLApple, Inc | 7.27% | 6.52% | 0.75% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.76% | 7.32% | 1.56% |
| METAMeta Platforms, Inc. | 2.78% | 3.80% | 1.02% |
| GOOGLAlphabet A Usd 0.001 | 3.36% | 2.03% | 1.33% |
| LRCXLam Research Corp 3.125 06/15/2060 | 1.69% | 3.57% | 1.88% |
| AMATApplied Materials, Inc. | 1.86% | 3.19% | 1.33% |
| GOOGAlphabet Inc | 3.13% | 1.61% | 1.52% |
| KLACKla Corp. | 1.11% | 2.54% | 1.43% |
| WMTWalmart, Inc. | 2.41% | 0.97% | 1.44% |
53.3% of QUAL is already inside QQQ.
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, QQQ or QUAL?
QQQ has an expense ratio of 0.18% while QUAL charges 0.15%. QUAL is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, QQQ or QUAL?
Over the past year QQQ returned +22.98% vs +15.83% for QUAL, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), QQQ annualized +18.95% vs +12.46% for QUAL. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or QUAL?
QQQ has been the more volatile fund at 17.9% annualized versus 14.6% for QUAL. Worst drawdown: QQQ -35.1% vs QUAL -34.1%.
Should I hold both QQQ and QUAL?
QQQ and QUAL have a monthly-return correlation of 0.89, 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 QQQ and QUAL?
53.3% of QUAL's money is in holdings QQQ also owns. 53.3% of QUAL's is in holdings QQQ also owns. They hold 34 positions in common, counted across the 102 positions we hold weights for in QQQ and 125 in QUAL.
Which pays a higher dividend, QQQ or QUAL?
QQQ yields 0.44% while QUAL yields 0.86%, so QUAL currently pays the higher dividend yield.
Is QUAL better than QQQ?
QUAL has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QUAL is less concentrated, with 43.9% 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.