QQQ vs SWZ
Invesco QQQ Trust, Series 1 vs Total Return Securities Fund
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SWZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.62% | |
| AUM | $496.3B | $96M | |
| Dividend Yield | 0.44% | 0.00% | |
| Holdings | 108 | 27 | |
| YTD Return | +16.64% | -4.82% | |
| 1Y Return | +27.27% | -2.15% | |
| 3Y Return (annualized) | +25.96% | +6.57% | |
| 5Y Return (annualized) | +14.54% | +2.35% | |
| Volatility (annualized) | 30.6% | 27.8% | |
| Max Drawdown | -83.0% | -57.7% | |
| Fund Family | Invesco (US) | Total Return Securities Fund | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Aug 27, 1987 |
QQQ vs SWZ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Total Return Securities Fund (SWZ) is a ETF from Total Return Securities Fund. Over the past year QQQ returned +27.27% while SWZ returned -2.15%. Year to date, QQQ is up 16.64% versus a loss of 4.82% for SWZ.
Over three years, QQQ compounded at +25.96% per year against +6.57% for SWZ; over five years the annualized figures are +14.54% and +2.35% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs +11.57%. 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 27.8% for SWZ. 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 -57.7% for SWZ. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SWZ charges 1.62%. On a $10,000 position that is $18 vs $162 annually, a gap of $144 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.00% for SWZ.
Holdings Overlap
QQQ and SWZ share 0 holdings out of 126 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SWZ?
QQQ has an expense ratio of 0.18% while SWZ charges 1.62%. QQQ is the cheaper option. On a $10,000 investment, that is $144 per year of difference.
Which performed better, QQQ or SWZ?
Over the past year QQQ returned +27.27% vs -2.15% for SWZ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.03% vs +11.57% for SWZ. Past performance does not guarantee future results.
Which is riskier, QQQ or SWZ?
QQQ has been the more volatile fund at 30.6% annualized versus 27.8% for SWZ. Worst drawdown: QQQ -83.0% vs SWZ -57.7%.
Should I hold both QQQ and SWZ?
QQQ and SWZ have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SWZ?
QQQ and SWZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 126 unique securities.
Which pays a higher dividend, QQQ or SWZ?
QQQ yields 0.44% while SWZ yields 0.00%, so QQQ currently pays the higher dividend yield.
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