QQQ vs TAXX
Invesco QQQ Trust, Series 1 vs BondBloxx IR+M Tax-Aware Short Duration ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. TAXX offers more diversification with 311 holdings.
Side-by-Side Comparison
| Metric | QQQ | TAXX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $286M | |
| Dividend Yield | 0.44% | 3.45% | |
| Holdings | 108 | 311 | |
| YTD Return | +16.30% | +1.54% | |
| 1Y Return | +24.83% | +2.96% | |
| 3Y Return (annualized) | +25.48% | - | |
| 5Y Return (annualized) | +14.50% | - | |
| Volatility (annualized) | 30.6% | 1.4% | |
| Max Drawdown | -83.0% | -0.9% | |
| Fund Family | Invesco (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Mar 14, 2024 |
QQQ vs TAXX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and BondBloxx IR+M Tax-Aware Short Duration ETF (TAXX) is a ETF from BondBloxx. Over the past year QQQ returned +24.83% while TAXX returned +2.96%. Year to date, QQQ is up 16.30% versus a gain of 1.54% for TAXX.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 1.4% for TAXX. 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 -0.9% for TAXX. 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TAXX charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.45% for TAXX.
Holdings Overlap
QQQ and TAXX share 0 holdings out of 226 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 TAXX?
QQQ has an expense ratio of 0.18% while TAXX charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or TAXX?
Over the past year QQQ returned +24.83% vs +2.96% for TAXX, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.01% vs +3.93% for TAXX. Past performance does not guarantee future results.
Which is riskier, QQQ or TAXX?
QQQ has been the more volatile fund at 30.6% annualized versus 1.4% for TAXX. Worst drawdown: QQQ -83.0% vs TAXX -0.9%.
Should I hold both QQQ and TAXX?
QQQ and TAXX have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TAXX?
QQQ and TAXX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 226 unique securities.
Which pays a higher dividend, QQQ or TAXX?
QQQ yields 0.44% while TAXX yields 3.45%, so TAXX currently pays the higher dividend yield.
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