QQQ vs SMIZ
Invesco QQQ Trust, Series 1 vs Zacks Small/Mid Cap ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. SMIZ offers more diversification with 203 holdings.
Side-by-Side Comparison
| Metric | QQQ | SMIZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.55% | |
| AUM | $496.3B | $285M | |
| Dividend Yield | 0.44% | 0.55% | |
| Holdings | 108 | 203 | |
| YTD Return | +16.64% | +13.72% | |
| 1Y Return | +27.27% | +21.13% | |
| 3Y Return (annualized) | +25.96% | +21.98% | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 17.5% | |
| Max Drawdown | -83.0% | -25.0% | |
| Fund Family | Invesco (US) | Zacks | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Oct 3, 2023 |
QQQ vs SMIZ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Zacks Small/Mid Cap ETF (SMIZ) is a ETF from Zacks. Over the past year QQQ returned +27.27% while SMIZ returned +21.13%. Year to date, QQQ is up 16.64% versus a gain of 13.72% for SMIZ.
Over three years, QQQ compounded at +25.96% per year against +21.98% for SMIZ. Across the full 3-year window we track, SMIZ has the edge at +21.98% annualized vs +13.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 17.5% for SMIZ. 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 -25.0% for SMIZ. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SMIZ 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 0.55% for SMIZ.
Holdings Overlap
QQQ and SMIZ share 8 holdings out of 293 unique holdings combined, representing a 3.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SMIZ?
QQQ has an expense ratio of 0.18% while SMIZ 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 SMIZ?
Over the past year QQQ returned +27.27% vs +21.13% for SMIZ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.03% vs +21.98% for SMIZ. Past performance does not guarantee future results.
Which is riskier, QQQ or SMIZ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.5% for SMIZ. Worst drawdown: QQQ -83.0% vs SMIZ -25.0%.
Should I hold both QQQ and SMIZ?
QQQ and SMIZ have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SMIZ?
QQQ and SMIZ share 8 common holdings with a 3.3% weight overlap. Combined, they hold 293 unique securities.
Which pays a higher dividend, QQQ or SMIZ?
QQQ yields 0.44% while SMIZ yields 0.55%, so SMIZ currently pays the higher dividend yield.
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