QQQ vs SOXX
Invesco QQQ Trust, Series 1 vs iShares Semiconductor ETF
Quick Verdict
QQQ has a lower expense ratio. SOXX delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SOXX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.33% | |
| AUM | $496.3B | $43.0B | |
| Dividend Yield | 0.44% | 0.29% | |
| Holdings | 108 | 34 | |
| YTD Return | +16.64% | +65.97% | |
| 1Y Return | +27.27% | +115.58% | |
| 3Y Return (annualized) | +25.96% | +48.12% | |
| 5Y Return (annualized) | +14.54% | +28.82% | |
| Volatility (annualized) | 30.6% | 30.4% | |
| Max Drawdown | -83.0% | -70.2% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 10, 2001 |
QQQ vs SOXX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares Semiconductor ETF (SOXX) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +27.27% while SOXX returned +115.58%. Year to date, QQQ is up 16.64% versus a gain of 65.97% for SOXX.
Over three years, QQQ compounded at +25.96% per year against +48.12% for SOXX; over five years the annualized figures are +14.54% and +28.82% respectively. Across the full 25-year window we track, SOXX has the edge at +13.92% 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 30.4% for SOXX. 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 -70.2% for SOXX. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SOXX charges 0.33%. On a $10,000 position that is $18 vs $33 annually, a gap of $15 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.29% for SOXX.
Holdings Overlap
QQQ and SOXX share 19 holdings out of 114 unique holdings combined, representing a 32.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SOXX?
QQQ has an expense ratio of 0.18% while SOXX charges 0.33%. QQQ is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or SOXX?
Over the past year QQQ returned +27.27% vs +115.58% for SOXX, so SOXX leads on 1-year performance. Over the longest common window we track (25 years), QQQ annualized +13.03% vs +13.92% for SOXX. Past performance does not guarantee future results.
Which is riskier, QQQ or SOXX?
QQQ has been the more volatile fund at 30.6% annualized versus 30.4% for SOXX. Worst drawdown: QQQ -83.0% vs SOXX -70.2%.
Should I hold both QQQ and SOXX?
QQQ and SOXX have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SOXX?
QQQ and SOXX share 19 common holdings with a 32.3% weight overlap. Combined, they hold 114 unique securities.
Which pays a higher dividend, QQQ or SOXX?
QQQ yields 0.44% while SOXX yields 0.29%, so QQQ currently pays the higher dividend yield.
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