QQQ vs TAXS
Invesco QQQ Trust, Series 1 vs Northern Trust Short Term Tax-Exempt Bond ETF
Quick Verdict
TAXS has a lower expense ratio. QQQ delivered stronger 1-year returns. TAXS offers more diversification with 1,098 holdings.
Side-by-Side Comparison
| Metric | QQQ | TAXS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $496.3B | $131M | |
| Dividend Yield | 0.44% | 2.04% | |
| Holdings | 108 | 1,098 | |
| YTD Return | +16.19% | +1.26% | |
| 1Y Return | +25.22% | +2.49% | |
| 3Y Return (annualized) | +25.47% | - | |
| 5Y Return (annualized) | +14.34% | - | |
| Volatility (annualized) | 30.6% | 1.4% | |
| Max Drawdown | -83.0% | -0.8% | |
| Fund Family | Invesco (US) | Northern Trust Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Mar 1, 2025 |
QQQ vs TAXS Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Northern Trust Short Term Tax-Exempt Bond ETF (TAXS) is a ETF from Northern Trust Asset Management. Over the past year QQQ returned +25.22% while TAXS returned +2.49%. Year to date, QQQ is up 16.19% versus a gain of 1.26% for TAXS.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 1.4% for TAXS. 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 -0.8% for TAXS. 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TAXS 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 2.04% for TAXS.
Holdings Overlap
QQQ and TAXS share 0 holdings out of 460 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 TAXS?
QQQ has an expense ratio of 0.18% while TAXS charges 0.05%. TAXS is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, QQQ or TAXS?
Over the past year QQQ returned +25.22% vs +2.49% for TAXS, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.01% vs +2.54% for TAXS. Past performance does not guarantee future results.
Which is riskier, QQQ or TAXS?
QQQ has been the more volatile fund at 30.6% annualized versus 1.4% for TAXS. Worst drawdown: QQQ -83.0% vs TAXS -0.8%.
Should I hold both QQQ and TAXS?
QQQ and TAXS have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TAXS?
QQQ and TAXS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 460 unique securities.
Which pays a higher dividend, QQQ or TAXS?
QQQ yields 0.44% while TAXS yields 2.04%, so TAXS currently pays the higher dividend yield.
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