QQQ vs TDTT
Invesco QQQ Trust, Series 1 vs FlexShares iBoxx 3 Year Target Duration TIPS Index Fund
Quick Verdict
QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | TDTT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.18% | |
| AUM | $496.3B | $2.5B | |
| Dividend Yield | 0.44% | 5.14% | |
| Holdings | 108 | 24 | |
| YTD Return | +16.64% | +1.72% | |
| 1Y Return | +27.27% | +2.58% | |
| 3Y Return (annualized) | +25.96% | +5.14% | |
| 5Y Return (annualized) | +14.54% | +2.66% | |
| Volatility (annualized) | 30.6% | 2.7% | |
| Max Drawdown | -83.0% | -8.3% | |
| Fund Family | Invesco (US) | Flexshares Trust | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Sep 19, 2011 |
QQQ vs TDTT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and FlexShares iBoxx 3 Year Target Duration TIPS Index Fund (TDTT) is a ETF from Flexshares Trust. Over the past year QQQ returned +27.27% while TDTT returned +2.58%. Year to date, QQQ is up 16.64% versus a gain of 1.72% for TDTT.
Over three years, QQQ compounded at +25.96% per year against +5.14% for TDTT; over five years the annualized figures are +14.54% and +2.66% respectively. Across the full 15-year window we track, QQQ has the edge at +13.03% annualized vs +1.44%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 2.7% for TDTT. 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 -8.3% for TDTT. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TDTT charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, QQQ currently yields 0.44% against 5.14% for TDTT.
Holdings Overlap
QQQ and TDTT share 0 holdings out of 121 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 TDTT?
QQQ has an expense ratio of 0.18% while TDTT charges 0.18%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, QQQ or TDTT?
Over the past year QQQ returned +27.27% vs +2.58% for TDTT, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), QQQ annualized +13.03% vs +1.44% for TDTT. Past performance does not guarantee future results.
Which is riskier, QQQ or TDTT?
QQQ has been the more volatile fund at 30.6% annualized versus 2.7% for TDTT. Worst drawdown: QQQ -83.0% vs TDTT -8.3%.
Should I hold both QQQ and TDTT?
QQQ and TDTT have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TDTT?
QQQ and TDTT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 121 unique securities.
Which pays a higher dividend, QQQ or TDTT?
QQQ yields 0.44% while TDTT yields 5.14%, so TDTT currently pays the higher dividend yield.
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