QQQ vs TAX
Invesco QQQ Trust, Series 1 vs Cambria Tax Aware ETF
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 | TAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.54% | |
| AUM | $496.3B | $26M | |
| Dividend Yield | 0.44% | 0.32% | |
| Holdings | 108 | 101 | |
| YTD Return | +16.64% | +9.85% | |
| 1Y Return | +27.27% | +19.04% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 13.1% | |
| Max Drawdown | -83.0% | -18.9% | |
| Fund Family | Invesco (US) | Cambria Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 18, 2024 |
QQQ vs TAX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Cambria Tax Aware ETF (TAX) is a ETF from Cambria Investment Management. Over the past year QQQ returned +27.27% while TAX returned +19.04%. Year to date, QQQ is up 16.64% versus a gain of 9.85% for TAX.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.1% for TAX. 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 -18.9% for TAX. 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while TAX charges 0.54%. On a $10,000 position that is $18 vs $54 annually, a gap of $36 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.32% for TAX.
Holdings Overlap
QQQ and TAX share 8 holdings out of 193 unique holdings combined, representing a 5.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or TAX?
QQQ has an expense ratio of 0.18% while TAX charges 0.54%. QQQ is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, QQQ or TAX?
Over the past year QQQ returned +27.27% vs +19.04% for TAX, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.03% vs +16.97% for TAX. Past performance does not guarantee future results.
Which is riskier, QQQ or TAX?
QQQ has been the more volatile fund at 30.6% annualized versus 13.1% for TAX. Worst drawdown: QQQ -83.0% vs TAX -18.9%.
Should I hold both QQQ and TAX?
QQQ and TAX have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and TAX?
QQQ and TAX share 8 common holdings with a 5.3% weight overlap. Combined, they hold 193 unique securities.
Which pays a higher dividend, QQQ or TAX?
QQQ yields 0.44% while TAX yields 0.32%, so QQQ currently pays the higher dividend yield.
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