QQQ vs SMOT
Invesco QQQ Trust, Series 1 vs VanEck Morningstar SMID Moat ETF
Which is better, QQQ or SMOT?
Large Cap Growth against Mid Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. SMOT is less concentrated, with 15.4% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | SMOT |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.49% |
| AUM | $483.5B | $339M |
| Dividend Yield | 0.44% | 1.21% |
| Holdings | 107 | 111 |
| YTD Return | +21.71%Best | +4.77% |
| 1Y Return | +25.89%Best | +6.86% |
| 3Y Return (annualized) | +28.80%Best | +11.51% |
| 5Y Return (annualized) | +15.67% | - |
| Volatility (annualized) | 18.1% | 17.3%Best |
| Max Drawdown | -22.8%Best | -23.4% |
| $10,000 over 4 years | $27,427Best | $15,214 |
| Top 10 Weight | 46.5% | 15.4%Best |
| Fund Family | Invesco (US) | VanEck |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Growth |
| Inception | Mar 10, 1999 | Oct 4, 2022 |
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Oct 6, 2022 to Sep 25, 2026 (4 years).
QQQ vs SMOT growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4 years both funds cover.
QQQ vs SMOT Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and VanEck Morningstar SMID Moat ETF (SMOT) is an ETF from VanEck. Over the past year QQQ returned +25.89% while SMOT returned +6.86%. Year to date, QQQ is up 21.71% versus a gain of 4.77% for SMOT.
Over three years, QQQ compounded at +28.80% per year against +11.51% for SMOT. Across the full 4-year window we track, QQQ has the edge at +28.69% annualized vs +11.06%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.1% compared with 17.3% for SMOT. 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 -22.8% for QQQ and -23.4% for SMOT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while SMOT charges 0.49%. On a $10,000 position that is $18 vs $49 annually, a gap of $31 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.21% for SMOT.
Holdings Overlap
2.0% of QQQ's money is in holdings SMOT also owns. 8.7% of SMOT's money is in holdings QQQ also owns.
SMOT and QQQ share little of their money.
8 positions in common, counted across the 102 positions we hold weights for in QQQ and 110 in SMOT, against full books of 107 and 111.
What only one of them owns
Our book lists 100 positions for SMOT that do not appear in our book for QQQ (88.2% of the fund), and 88 for QQQ that do not appear in SMOT (95.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in SMOT | Difference |
|---|---|---|---|
| ABNBAirbnb Inc | 0.28% | 1.68% | 1.40% |
| MDLZMondelez International Inc Com A Npv | 0.35% | 1.28% | 0.93% |
| DDOGDatadog Inc | 0.41% | 1.07% | 0.66% |
| KHCKraft Heinz Co. | 0.13% | 1.32% | 1.19% |
| GEHCGe Healthcare Technologies Inc | 0.14% | 1.26% | 1.12% |
| MPWRMonolithic Power Systems Inc | 0.29% | 0.67% | 0.38% |
| NXPINxp Semiconductors Nv Sedol B505Pn7 | 0.26% | 0.65% | 0.39% |
| DXCMDexcom Inc. | 0.14% | 0.74% | 0.60% |
You are not choosing between two funds in isolation.
Whichever of QQQ and SMOT you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or SMOT?
QQQ has an expense ratio of 0.18% while SMOT charges 0.49%. QQQ is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, QQQ or SMOT?
Over the past year QQQ returned +25.89% vs +6.86% for SMOT, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +28.69% vs +11.06% for SMOT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or SMOT?
QQQ has been the more volatile fund at 18.1% annualized versus 17.3% for SMOT. Worst drawdown: QQQ -22.8% vs SMOT -23.4%.
Should I hold both QQQ and SMOT?
QQQ and SMOT have a monthly-return correlation of 0.59, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and SMOT?
8.7% of SMOT's money is in holdings QQQ also owns. 8.7% of SMOT's is in holdings QQQ also owns. They hold 8 positions in common, counted across the 102 positions we hold weights for in QQQ and 110 in SMOT.
Which pays a higher dividend, QQQ or SMOT?
QQQ yields 0.44% while SMOT yields 1.21%, so SMOT currently pays the higher dividend yield.
Is SMOT better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. SMOT is less concentrated, with 15.4% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.