QQQ vs TAXT
Invesco QQQ Trust, Series 1 vs Northern Trust Tax-Exempt Bond ETF
Quick Verdict
TAXT has a lower expense ratio. QQQ delivered stronger 1-year returns. TAXT offers more diversification with 182 holdings.
Side-by-Side Comparison
| Metric | QQQ | TAXT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $455.8B | $60M | |
| Dividend Yield | 0.41% | 2.54% | |
| Holdings | 108 | 441 | |
| YTD Return | +17.46% | +0.45% | |
| 1Y Return | +26.02% | +4.61% | |
| 3Y Return (annualized) | +25.51% | - | |
| 5Y Return (annualized) | +15.12% | - | |
| Volatility (annualized) | 30.6% | 3.8% | |
| Max Drawdown | -83.0% | -2.5% | |
| Fund Family | Invesco (US) | Northern Trust Asset Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 28, 2025 |
QQQ vs TAXT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Northern Trust Tax-Exempt Bond ETF (TAXT) is a ETF from Northern Trust Asset Management. Over the past year QQQ returned +26.02% while TAXT returned +4.61%. Year to date, QQQ is up 17.46% versus a gain of 0.45% for TAXT.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.8% for TAXT. 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 -2.5% for TAXT. 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 TAXT 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 0.41% against 2.54% for TAXT.
Holdings Overlap
QQQ and TAXT share 0 holdings out of 285 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 TAXT?
QQQ has an expense ratio of 0.18% while TAXT charges 0.05%. TAXT is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, QQQ or TAXT?
Over the past year QQQ returned +26.02% vs +4.61% for TAXT, so QQQ leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, QQQ or TAXT?
QQQ has been the more volatile fund at 30.6% annualized versus 3.8% for TAXT. Worst drawdown: QQQ -83.0% vs TAXT -2.5%.
Should I hold both QQQ and TAXT?
QQQ and TAXT 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 TAXT?
QQQ and TAXT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 285 unique securities.
Which pays a higher dividend, QQQ or TAXT?
QQQ yields 0.41% while TAXT yields 2.54%, so TAXT currently pays the higher dividend yield.
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