QQQ vs RXI
Invesco QQQ Trust, Series 1 vs iShares Global Consumer Discretionary ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. RXI offers more diversification with 151 holdings.
Side-by-Side Comparison
| Metric | QQQ | RXI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.37% | |
| AUM | $496.3B | $274M | |
| Dividend Yield | 0.44% | 1.45% | |
| Holdings | 108 | 151 | |
| YTD Return | +16.64% | -1.89% | |
| 1Y Return | +27.27% | +4.52% | |
| 3Y Return (annualized) | +25.96% | +11.58% | |
| 5Y Return (annualized) | +14.54% | +5.24% | |
| Volatility (annualized) | 30.6% | 18.3% | |
| Max Drawdown | -83.0% | -62.0% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Sep 12, 2006 |
QQQ vs RXI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares Global Consumer Discretionary ETF (RXI) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +27.27% while RXI returned +4.52%. Year to date, QQQ is up 16.64% versus a loss of 1.89% for RXI.
Over three years, QQQ compounded at +25.96% per year against +11.58% for RXI; over five years the annualized figures are +14.54% and +5.24% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +7.39%. 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 18.3% for RXI. 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 -62.0% for RXI. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while RXI charges 0.37%. On a $10,000 position that is $18 vs $37 annually, a gap of $19 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.45% for RXI.
Holdings Overlap
QQQ and RXI share 9 holdings out of 225 unique holdings combined, representing a 10.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or RXI?
QQQ has an expense ratio of 0.18% while RXI charges 0.37%. QQQ is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, QQQ or RXI?
Over the past year QQQ returned +27.27% vs +4.52% for RXI, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.03% vs +7.39% for RXI. Past performance does not guarantee future results.
Which is riskier, QQQ or RXI?
QQQ has been the more volatile fund at 30.6% annualized versus 18.3% for RXI. Worst drawdown: QQQ -83.0% vs RXI -62.0%.
Should I hold both QQQ and RXI?
QQQ and RXI have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RXI?
QQQ and RXI share 9 common holdings with a 10.2% weight overlap. Combined, they hold 225 unique securities.
Which pays a higher dividend, QQQ or RXI?
QQQ yields 0.44% while RXI yields 1.45%, so RXI currently pays the higher dividend yield.
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