QQQ vs SMDX
Invesco QQQ Trust, Series 1 vs Intech S&P Small-Mid Cap Diversified Alpha ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. SMDX offers more diversification with 557 holdings.
Side-by-Side Comparison
| Metric | QQQ | SMDX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $135M | |
| Dividend Yield | 0.44% | 0.52% | |
| Holdings | 108 | 557 | |
| YTD Return | +16.64% | +16.39% | |
| 1Y Return | +27.27% | +24.11% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 12.7% | |
| Max Drawdown | -83.0% | -14.5% | |
| Fund Family | Invesco (US) | Intech ETF | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Mar 1, 2025 |
QQQ vs SMDX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Intech S&P Small-Mid Cap Diversified Alpha ETF (SMDX) is a ETF from Intech ETF. Over the past year QQQ returned +27.27% while SMDX returned +24.11%. Year to date, QQQ is up 16.64% versus a gain of 16.39% for SMDX.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.7% for SMDX. 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 -14.5% for SMDX. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SMDX charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.52% for SMDX.
Holdings Overlap
QQQ and SMDX share 0 holdings out of 628 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 SMDX?
QQQ has an expense ratio of 0.18% while SMDX charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or SMDX?
Over the past year QQQ returned +27.27% vs +24.11% for SMDX, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.03% vs +22.24% for SMDX. Past performance does not guarantee future results.
Which is riskier, QQQ or SMDX?
QQQ has been the more volatile fund at 30.6% annualized versus 12.7% for SMDX. Worst drawdown: QQQ -83.0% vs SMDX -14.5%.
Should I hold both QQQ and SMDX?
QQQ and SMDX have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SMDX?
QQQ and SMDX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 628 unique securities.
Which pays a higher dividend, QQQ or SMDX?
QQQ yields 0.44% while SMDX yields 0.52%, so SMDX currently pays the higher dividend yield.
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