QQQ vs SLX
Invesco QQQ Trust, Series 1 vs VanEck Steel ETF
Quick Verdict
QQQ has a lower expense ratio. SLX delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SLX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.55% | |
| AUM | $496.3B | $165M | |
| Dividend Yield | 0.44% | 1.27% | |
| Holdings | 108 | 49 | |
| YTD Return | +16.64% | +24.06% | |
| 1Y Return | +27.27% | +58.45% | |
| 3Y Return (annualized) | +25.96% | +19.38% | |
| 5Y Return (annualized) | +14.54% | +15.61% | |
| Volatility (annualized) | 30.6% | 33.8% | |
| Max Drawdown | -83.0% | -82.1% | |
| Fund Family | Invesco (US) | VanEck | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Oct 10, 2006 |
QQQ vs SLX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and VanEck Steel ETF (SLX) is a ETF from VanEck. Over the past year QQQ returned +27.27% while SLX returned +58.45%. Year to date, QQQ is up 16.64% versus a gain of 24.06% for SLX.
Over three years, QQQ compounded at +25.96% per year against +19.38% for SLX; over five years the annualized figures are +14.54% and +15.61% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +7.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SLX has been the more volatile fund, with annualized monthly volatility of 33.8% 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 -82.1% for SLX. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SLX charges 0.55%. On a $10,000 position that is $18 vs $55 annually, a gap of $37 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.27% for SLX.
Holdings Overlap
QQQ and SLX share 0 holdings out of 141 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 SLX?
QQQ has an expense ratio of 0.18% while SLX charges 0.55%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, QQQ or SLX?
Over the past year QQQ returned +27.27% vs +58.45% for SLX, so SLX leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.03% vs +7.70% for SLX. Past performance does not guarantee future results.
Which is riskier, QQQ or SLX?
SLX has been the more volatile fund at 33.8% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SLX -82.1%.
Should I hold both QQQ and SLX?
QQQ and SLX have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SLX?
QQQ and SLX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 141 unique securities.
Which pays a higher dividend, QQQ or SLX?
QQQ yields 0.44% while SLX yields 1.27%, so SLX currently pays the higher dividend yield.
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