QQQ vs TAFM
Invesco QQQ Trust, Series 1 vs AB Tax-Aware Intermediate Municipal ETF
Which is better, QQQ or TAFM?
Large Cap Growth against Municipal Bond.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window.
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
| Metric | QQQ | TAFM |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.28% |
| AUM | $483.5B | $777M |
| Dividend Yield | 0.44% | 3.68% |
| Holdings | 107 | 672 |
| YTD Return | +17.95%Best | -1.37% |
| 1Y Return | +21.77%Best | +0.02% |
| 3Y Return (annualized) | +25.63% | - |
| 5Y Return (annualized) | +15.24% | - |
| Volatility (annualized) | 16.9% | 4.1%Best |
| Max Drawdown | -22.8% | -4.7%Best |
| $10,000 over 2.8 years | $18,292Best | $10,722 |
| Fund Family | Invesco (US) | AllianceBernstein L.P. |
| Category | Equity | Tax Preferred |
| Style | Large Cap Growth | Municipal Bond |
| Inception | Mar 10, 1999 | Dec 13, 2023 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.8 years row, are measured over the window both funds cover: Dec 13, 2023 to Sep 18, 2026 (2.8 years).
QQQ vs TAFM 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 2.8 years both funds cover.
QQQ vs TAFM Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and AB Tax-Aware Intermediate Municipal ETF (TAFM) is an ETF from AllianceBernstein L.P.. Over the past year QQQ returned +21.77% while TAFM returned +0.02%. Year to date, QQQ is up 17.95% versus a loss of 1.37% for TAFM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 4.1% for TAFM. 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 -4.7% for TAFM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.44. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while TAFM 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 3.68% for TAFM.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 238 in TAFM, totalling 99.9% and 31.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 102 positions we hold weights for in QQQ and 238 in TAFM, against full books of 107 and 672.
You are not choosing between two funds in isolation.
Whichever of QQQ and TAFM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or TAFM?
QQQ has an expense ratio of 0.18% while TAFM charges 0.28%. QQQ is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, QQQ or TAFM?
Over the past year QQQ returned +21.77% vs +0.02% for TAFM, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or TAFM?
QQQ has been the more volatile fund at 16.9% annualized versus 4.1% for TAFM. Worst drawdown: QQQ -22.8% vs TAFM -4.7%.
Should I hold both QQQ and TAFM?
QQQ and TAFM have a monthly-return correlation of 0.44, 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 TAFM?
QQQ yields 0.44% while TAFM yields 3.68%, so TAFM currently pays the higher dividend yield.
Is TAFM 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.