QQQ vs TEC
Invesco QQQ Trust, Series 1 vs Harbor Transformative Technologies ETF
Quick Verdict
QQQ has a lower expense ratio. TEC delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | TEC | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.69% | |
| AUM | $455.8B | $6M | |
| Dividend Yield | 0.41% | 0.00% | |
| Holdings | 108 | 43 | |
| YTD Return | +17.85% | +20.15% | |
| 1Y Return | +26.45% | +33.15% | |
| 3Y Return (annualized) | +26.07% | - | |
| 5Y Return (annualized) | +15.16% | - | |
| Volatility (annualized) | 30.6% | 22.8% | |
| Max Drawdown | -83.0% | -17.5% | |
| Fund Family | Invesco (US) | Harbor Funds | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Apr 16, 2025 |
QQQ vs TEC Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Harbor Transformative Technologies ETF (TEC) is a ETF from Harbor Funds. Over the past year QQQ returned +26.45% while TEC returned +33.15%. Year to date, QQQ is up 17.85% versus a gain of 20.15% for TEC.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 22.8% for TEC. 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 -17.5% for TEC. 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while TEC charges 0.69%. On a $10,000 position that is $18 vs $69 annually, a gap of $51 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.00% for TEC.
Holdings Overlap
QQQ and TEC share 25 holdings out of 120 unique holdings combined, representing a 51.4% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, QQQ or TEC?
QQQ has an expense ratio of 0.18% while TEC charges 0.69%. QQQ is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, QQQ or TEC?
Over the past year QQQ returned +26.45% vs +33.15% for TEC, so TEC leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.09% vs +52.36% for TEC. Past performance does not guarantee future results.
Which is riskier, QQQ or TEC?
QQQ has been the more volatile fund at 30.6% annualized versus 22.8% for TEC. Worst drawdown: QQQ -83.0% vs TEC -17.5%.
Should I hold both QQQ and TEC?
QQQ and TEC have a monthly-return correlation of 0.98, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and TEC?
QQQ and TEC share 25 common holdings with a 51.4% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, QQQ or TEC?
QQQ yields 0.41% while TEC yields 0.00%, so QQQ currently pays the higher dividend yield.
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