QQQ vs SOXQ
Invesco QQQ Trust, Series 1 vs Invesco PHLX Semiconductor ETF
Quick Verdict
QQQ has a lower expense ratio. SOXQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SOXQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.19% | |
| AUM | $496.3B | $3.0B | |
| Dividend Yield | 0.44% | 0.32% | |
| Holdings | 108 | 33 | |
| YTD Return | +16.64% | +59.67% | |
| 1Y Return | +27.27% | +110.51% | |
| 3Y Return (annualized) | +25.96% | +50.30% | |
| 5Y Return (annualized) | +14.54% | +29.73% | |
| Volatility (annualized) | 30.6% | 36.3% | |
| Max Drawdown | -83.0% | -46.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 11, 2021 |
QQQ vs SOXQ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco PHLX Semiconductor ETF (SOXQ) is a ETF from Invesco (US). Over the past year QQQ returned +27.27% while SOXQ returned +110.51%. Year to date, QQQ is up 16.64% versus a gain of 59.67% for SOXQ.
Over three years, QQQ compounded at +25.96% per year against +50.30% for SOXQ; over five years the annualized figures are +14.54% and +29.73% respectively. Across the full 5-year window we track, SOXQ has the edge at +29.49% annualized vs +13.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SOXQ has been the more volatile fund, with annualized monthly volatility of 36.3% 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 -46.0% for SOXQ. 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SOXQ charges 0.19%. On a $10,000 position that is $18 vs $19 annually, a gap of $1 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.32% for SOXQ.
Holdings Overlap
QQQ and SOXQ share 18 holdings out of 115 unique holdings combined, representing a 28.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SOXQ?
QQQ has an expense ratio of 0.18% while SOXQ charges 0.19%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, QQQ or SOXQ?
Over the past year QQQ returned +27.27% vs +110.51% for SOXQ, so SOXQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.03% vs +29.49% for SOXQ. Past performance does not guarantee future results.
Which is riskier, QQQ or SOXQ?
SOXQ has been the more volatile fund at 36.3% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs SOXQ -46.0%.
Should I hold both QQQ and SOXQ?
QQQ and SOXQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SOXQ?
QQQ and SOXQ share 18 common holdings with a 28.8% weight overlap. Combined, they hold 115 unique securities.
Which pays a higher dividend, QQQ or SOXQ?
QQQ yields 0.44% while SOXQ yields 0.32%, so QQQ currently pays the higher dividend yield.
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