QQQ vs TAFL
Invesco QQQ Trust, Series 1 vs AB Tax-Aware Long Municipal ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. TAFL offers more diversification with 156 holdings.
Side-by-Side Comparison
| Metric | QQQ | TAFL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.28% | |
| AUM | $496.3B | $65M | |
| Dividend Yield | 0.44% | 4.15% | |
| Holdings | 108 | 156 | |
| YTD Return | +16.64% | +1.08% | |
| 1Y Return | +27.27% | +7.11% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 4.8% | |
| Max Drawdown | -83.0% | -6.3% | |
| Fund Family | Invesco (US) | AllianceBernstein L.P. | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Dec 13, 2023 |
QQQ vs TAFL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and AB Tax-Aware Long Municipal ETF (TAFL) is a ETF from AllianceBernstein L.P.. Over the past year QQQ returned +27.27% while TAFL returned +7.11%. Year to date, QQQ is up 16.64% versus a gain of 1.08% for TAFL.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.8% for TAFL. 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 -6.3% for TAFL. 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 TAFL charges 0.28%. On a $10,000 position that is $18 vs $28 annually, a gap of $10 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 4.15% for TAFL.
Holdings Overlap
QQQ and TAFL share 0 holdings out of 169 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 TAFL?
QQQ has an expense ratio of 0.18% while TAFL charges 0.28%. QQQ is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, QQQ or TAFL?
Over the past year QQQ returned +27.27% vs +7.11% for TAFL, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.03% vs +3.19% for TAFL. Past performance does not guarantee future results.
Which is riskier, QQQ or TAFL?
QQQ has been the more volatile fund at 30.6% annualized versus 4.8% for TAFL. Worst drawdown: QQQ -83.0% vs TAFL -6.3%.
Should I hold both QQQ and TAFL?
QQQ and TAFL 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 TAFL?
QQQ and TAFL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 169 unique securities.
Which pays a higher dividend, QQQ or TAFL?
QQQ yields 0.44% while TAFL yields 4.15%, so TAFL currently pays the higher dividend yield.
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