QQQ vs QYLD
Invesco QQQ Trust, Series 1 vs Global X NASDAQ 100 Covered Call ETF
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 | QQQ | QYLD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.60% | |
| AUM | $496.3B | $8.3B | |
| Dividend Yield | 0.44% | 11.90% | |
| Holdings | 108 | 105 | |
| YTD Return | +16.64% | +11.16% | |
| 1Y Return | +27.27% | +24.30% | |
| 3Y Return (annualized) | +25.96% | +14.90% | |
| 5Y Return (annualized) | +14.54% | +8.00% | |
| Volatility (annualized) | 30.6% | 11.1% | |
| Max Drawdown | -83.0% | -30.7% | |
| Fund Family | Invesco (US) | Global X by mirae Asset | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Dec 11, 2013 |
QQQ vs QYLD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Global X NASDAQ 100 Covered Call ETF (QYLD) is a ETF from Global X by mirae Asset. Over the past year QQQ returned +27.27% while QYLD returned +24.30%. Year to date, QQQ is up 16.64% versus a gain of 11.16% for QYLD.
Over three years, QQQ compounded at +25.96% per year against +14.90% for QYLD; over five years the annualized figures are +14.54% and +8.00% respectively. Across the full 13-year window we track, QQQ has the edge at +13.03% annualized vs +2.89%. 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 11.1% for QYLD. 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 -30.7% for QYLD. 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while QYLD charges 0.60%. On a $10,000 position that is $18 vs $60 annually, a gap of $42 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 11.90% for QYLD.
Holdings Overlap
QQQ and QYLD share 100 holdings out of 104 unique holdings combined, representing a 99.3% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, QQQ or QYLD?
QQQ has an expense ratio of 0.18% while QYLD charges 0.60%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, QQQ or QYLD?
Over the past year QQQ returned +27.27% vs +24.30% for QYLD, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), QQQ annualized +13.03% vs +2.89% for QYLD. Past performance does not guarantee future results.
Which is riskier, QQQ or QYLD?
QQQ has been the more volatile fund at 30.6% annualized versus 11.1% for QYLD. Worst drawdown: QQQ -83.0% vs QYLD -30.7%.
Should I hold both QQQ and QYLD?
QQQ and QYLD have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and QYLD?
QQQ and QYLD share 100 common holdings with a 99.3% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or QYLD?
QQQ yields 0.44% while QYLD yields 11.90%, so QYLD currently pays the higher dividend yield.
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