QQQ vs TAXI
Invesco QQQ Trust, Series 1 vs Northern Trust Intermediate Tax-Exempt Bond ETF
Quick Verdict
TAXI has a lower expense ratio. QQQ delivered stronger 1-year returns. TAXI offers more diversification with 2,035 holdings.
Side-by-Side Comparison
| Metric | QQQ | TAXI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $496.3B | $164M | |
| Dividend Yield | 0.44% | 2.27% | |
| Holdings | 108 | 2,035 | |
| YTD Return | +16.30% | +0.15% | |
| 1Y Return | +24.83% | +3.56% | |
| 3Y Return (annualized) | +25.48% | - | |
| 5Y Return (annualized) | +14.50% | - | |
| Volatility (annualized) | 30.6% | 3.3% | |
| Max Drawdown | -83.0% | -2.2% | |
| Fund Family | Invesco (US) | Northern Trust Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Mar 1, 2025 |
QQQ vs TAXI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI) is a ETF from Northern Trust Asset Management. Over the past year QQQ returned +24.83% while TAXI returned +3.56%. Year to date, QQQ is up 16.30% versus a gain of 0.15% for TAXI.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.3% for TAXI. 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 -2.2% for TAXI. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TAXI charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.27% for TAXI.
Holdings Overlap
QQQ and TAXI share 0 holdings out of 617 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 TAXI?
QQQ has an expense ratio of 0.18% while TAXI charges 0.05%. TAXI is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, QQQ or TAXI?
Over the past year QQQ returned +24.83% vs +3.56% for TAXI, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.01% vs +3.59% for TAXI. Past performance does not guarantee future results.
Which is riskier, QQQ or TAXI?
QQQ has been the more volatile fund at 30.6% annualized versus 3.3% for TAXI. Worst drawdown: QQQ -83.0% vs TAXI -2.2%.
Should I hold both QQQ and TAXI?
QQQ and TAXI have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TAXI?
QQQ and TAXI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 617 unique securities.
Which pays a higher dividend, QQQ or TAXI?
QQQ yields 0.44% while TAXI yields 2.27%, so TAXI currently pays the higher dividend yield.
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