QQQ vs SETM
Invesco QQQ Trust, Series 1 vs Sprott Critical Materials ETF
Quick Verdict
QQQ has a lower expense ratio. SETM delivered stronger 1-year returns. SETM offers more diversification with 123 holdings.
Side-by-Side Comparison
| Metric | QQQ | SETM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.65% | |
| AUM | $455.8B | $522M | |
| Dividend Yield | 0.41% | 1.46% | |
| Holdings | 108 | 127 | |
| YTD Return | +18.20% | +8.42% | |
| 1Y Return | +27.63% | +64.70% | |
| 3Y Return (annualized) | +25.54% | +25.68% | |
| 5Y Return (annualized) | +15.12% | - | |
| Volatility (annualized) | 30.6% | 31.4% | |
| Max Drawdown | -83.0% | -41.8% | |
| Fund Family | Invesco (US) | Sprott ETFS | |
| Category | Equity | Commodity | |
| Inception | Mar 10, 1999 | Feb 1, 2023 |
QQQ vs SETM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Sprott Critical Materials ETF (SETM) is a ETF from Sprott ETFS. Over the past year QQQ returned +27.63% while SETM returned +64.70%. Year to date, QQQ is up 18.20% versus a gain of 8.42% for SETM.
Over three years, QQQ compounded at +25.54% per year against +25.68% for SETM. Across the full 4-year window we track, SETM has the edge at +16.97% annualized vs +13.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SETM has been the more volatile fund, with annualized monthly volatility of 31.4% compared with 30.6% for QQQ. 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 -41.8% for SETM. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SETM charges 0.65%. On a $10,000 position that is $18 vs $65 annually, a gap of $47 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.46% for SETM.
Holdings Overlap
QQQ and SETM share 0 holdings out of 226 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SETM?
QQQ has an expense ratio of 0.18% while SETM charges 0.65%. QQQ is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, QQQ or SETM?
Over the past year QQQ returned +27.63% vs +64.70% for SETM, so SETM leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.11% vs +16.97% for SETM. Past performance does not guarantee future results.
Which is riskier, QQQ or SETM?
SETM has been the more volatile fund at 31.4% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SETM -41.8%.
Should I hold both QQQ and SETM?
QQQ and SETM have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SETM?
QQQ and SETM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 226 unique securities.
Which pays a higher dividend, QQQ or SETM?
QQQ yields 0.41% while SETM yields 1.46%, so SETM currently pays the higher dividend yield.
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