QQQ vs SMAX

QQQ vs SMAX
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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

MetricQQQSMAXWinner
Expense Ratio0.18%0.50%
AUM$496.3B$89M
Dividend Yield0.44%0.75%
Holdings1087
YTD Return+16.64%+4.71%
1Y Return+27.27%+6.85%
3Y Return (annualized)+25.96%-
5Y Return (annualized)+14.54%-
Volatility (annualized)30.6%3.2%
Max Drawdown-83.0%-3.9%
Fund FamilyInvesco (US)iShares by BlackRock (US)
CategoryEquityAlternative
InceptionMar 10, 1999Sep 30, 2024

QQQ vs SMAX Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares Large Cap Max Buffer Sep ETF (SMAX) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +27.27% while SMAX returned +6.85%. Year to date, QQQ is up 16.64% versus a gain of 4.71% for SMAX.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.2% for SMAX. 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 -3.9% for SMAX. 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 SMAX 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 0.44% against 0.75% for SMAX.

Holdings Overlap

0.0%overlap

QQQ and SMAX share 0 holdings out of 105 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 SMAX?

QQQ has an expense ratio of 0.18% while SMAX 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 SMAX?

Over the past year QQQ returned +27.27% vs +6.85% for SMAX, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.03% vs +6.76% for SMAX. Past performance does not guarantee future results.

Which is riskier, QQQ or SMAX?

QQQ has been the more volatile fund at 30.6% annualized versus 3.2% for SMAX. Worst drawdown: QQQ -83.0% vs SMAX -3.9%.

Should I hold both QQQ and SMAX?

QQQ and SMAX 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 SMAX?

QQQ and SMAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.

Which pays a higher dividend, QQQ or SMAX?

QQQ yields 0.44% while SMAX yields 0.75%, so SMAX currently pays the higher dividend yield.

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