QQQ vs TAN

Quick Verdict

QQQ has a lower expense ratio. TAN delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: TANMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQTANWinner
Expense Ratio0.18%0.70%
AUM$455.8B$1.5B
Dividend Yield0.41%0.00%
Holdings10842
YTD Return+19.68%+1.69%
1Y Return+26.75%+40.86%
3Y Return (annualized)+26.25%-5.40%
5Y Return (annualized)+15.39%-8.71%
Volatility (annualized)30.6%43.7%
Max Drawdown-83.0%-95.3%
Fund FamilyInvesco (US)Invesco (US)
CategoryEquityEquity
InceptionMar 10, 1999Apr 15, 2008

QQQ vs TAN Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco Solar ETF (TAN) is a ETF from Invesco (US). Over the past year QQQ returned +26.75% while TAN returned +40.86%. Year to date, QQQ is up 19.68% versus a gain of 1.69% for TAN.

Over three years, QQQ compounded at +26.25% per year against -5.40% for TAN; over five years the annualized figures are +15.39% and -8.71% respectively. Across the full 18-year window we track, QQQ has the edge at +13.15% annualized vs -6.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TAN has been the more volatile fund, with annualized monthly volatility of 43.7% compared with 30.6% for QQQ. 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 -95.3% for TAN. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while TAN charges 0.70%. On a $10,000 position that is $18 vs $70 annually, a gap of $52 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.00% for TAN.

Holdings Overlap

0.0%overlap

QQQ and TAN share 0 holdings out of 138 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 TAN?

QQQ has an expense ratio of 0.18% while TAN charges 0.70%. QQQ is the cheaper option. On a $10,000 investment, that is $52 per year of difference.

Which performed better, QQQ or TAN?

Over the past year QQQ returned +26.75% vs +40.86% for TAN, so TAN leads on 1-year performance. Over the longest common window we track (18 years), QQQ annualized +13.15% vs -6.85% for TAN. Past performance does not guarantee future results.

Which is riskier, QQQ or TAN?

TAN has been the more volatile fund at 43.7% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs TAN -95.3%.

Should I hold both QQQ and TAN?

QQQ and TAN have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and TAN?

QQQ and TAN share 0 common holdings with a 0.0% weight overlap. Combined, they hold 138 unique securities.

Which pays a higher dividend, QQQ or TAN?

QQQ yields 0.41% while TAN yields 0.00%, so QQQ currently pays the higher dividend yield.

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