QQQ vs SQMX

QQQ vs SQMX

Which is better, QQQ or SQMX?

Large Cap Growth against Multi Alternative.

QQQ has a lower expense ratio. QQQ led over 1Y and the full window.

Lower Fees: QQQHigher Returns: QQQ

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

MetricQQQSQMX
Expense Ratio0.18%Best0.85%
AUM$483.5B$55M
Dividend Yield0.44%0.00%
Holdings10710
YTD Return+17.95%Best+4.09%
1Y Return+21.77%Best+7.12%
3Y Return (annualized)+25.63%-
5Y Return (annualized)+15.24%-
Volatility (annualized)19.5%2.9%Best
Max Drawdown-22.8%-7.4%Best
$10,000 over 1.7 years$13,806Best$11,249
Fund FamilyInvesco (US)First Trust Portfolios (US)
CategoryEquityAlternative
StyleLarge Cap GrowthMulti Alternative
InceptionMar 10, 1999Dec 20, 2024

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 1.7 years row, are measured over the window both funds cover: Dec 23, 2024 to Sep 18, 2026 (1.7 years).

QQQ vs SQMX 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 1.7 years both funds cover.

QQQ vs SQMX Performance

Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and FT Vest US Equity Quarterly Max Buffer ETF (SQMX) is an ETF from First Trust Portfolios (US). Over the past year QQQ returned +21.77% while SQMX returned +7.12%. Year to date, QQQ is up 17.95% versus a gain of 4.09% for SQMX.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 19.5% compared with 2.9% for SQMX. 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 -7.4% for SQMX. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while SQMX charges 0.85%. On a $10,000 position that is $18 vs $85 annually, a gap of $67 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.00% for SQMX.

You are not choosing between two funds in isolation.

Whichever of QQQ and SQMX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

QQQSQMX

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, QQQ or SQMX?

QQQ has an expense ratio of 0.18% while SQMX charges 0.85%. QQQ is the cheaper option, by $67 a year on a $10,000 investment.

Which performed better, QQQ or SQMX?

Over the past year QQQ returned +21.77% vs +7.12% for SQMX, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +20.89% vs +7.17% for SQMX. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, QQQ or SQMX?

QQQ has been the more volatile fund at 19.5% annualized versus 2.9% for SQMX. Worst drawdown: QQQ -22.8% vs SQMX -7.4%.

Should I hold both QQQ and SQMX?

QQQ and SQMX have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, QQQ or SQMX?

QQQ yields 0.44% while SQMX yields 0.00%, so QQQ currently pays the higher dividend yield.

Is SQMX better than QQQ?

QQQ has a lower expense ratio. QQQ led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.