QQQ vs SEPP

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQSEPPWinner
Expense Ratio0.18%0.50%
AUM$455.8B$24M
Dividend Yield0.41%0.00%
Holdings1087
YTD Return+19.68%+7.96%
1Y Return+26.75%+13.50%
3Y Return (annualized)+26.25%-
5Y Return (annualized)+15.39%-
Volatility (annualized)30.6%6.5%
Max Drawdown-83.0%-11.8%
Fund FamilyInvesco (US)PGIM Investments
CategoryEquityAlternative
InceptionMar 10, 1999May 15, 2024

QQQ vs SEPP Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and PGIM S&P 500 Buffer 12 ETF - September (SEPP) is a ETF from PGIM Investments. Over the past year QQQ returned +26.75% while SEPP returned +13.50%. Year to date, QQQ is up 19.68% versus a gain of 7.96% for SEPP.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 6.5% for SEPP. 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 -11.8% for SEPP. 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while SEPP charges 0.50%. On a $10,000 position that is $18 vs $50 annually, a gap of $32 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.00% for SEPP.

Frequently Asked Questions

Which is cheaper, QQQ or SEPP?

QQQ has an expense ratio of 0.18% while SEPP charges 0.50%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.

Which performed better, QQQ or SEPP?

Over the past year QQQ returned +26.75% vs +13.50% for SEPP, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.15% vs +13.03% for SEPP. Past performance does not guarantee future results.

Which is riskier, QQQ or SEPP?

QQQ has been the more volatile fund at 30.6% annualized versus 6.5% for SEPP. Worst drawdown: QQQ -83.0% vs SEPP -11.8%.

Should I hold both QQQ and SEPP?

QQQ and SEPP have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, QQQ or SEPP?

QQQ yields 0.41% while SEPP yields 0.00%, so QQQ currently pays the higher dividend yield.

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