QQQ vs TECB
Invesco QQQ Trust, Series 1 vs iShares US Tech Breakthrough Multisector ETF
Quick Verdict
QQQ has a lower expense ratio. TECB delivered stronger 1-year returns. TECB offers more diversification with 171 holdings.
Side-by-Side Comparison
| Metric | QQQ | TECB | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.30% | |
| AUM | $455.8B | $454M | |
| Dividend Yield | 0.41% | 0.30% | |
| Holdings | 108 | 177 | |
| YTD Return | +17.85% | +23.62% | |
| 1Y Return | +26.45% | +31.32% | |
| 3Y Return (annualized) | +26.07% | +26.53% | |
| 5Y Return (annualized) | +15.16% | +12.70% | |
| Volatility (annualized) | 30.6% | 21.8% | |
| Max Drawdown | -83.0% | -41.6% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 8, 2020 |
QQQ vs TECB Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares US Tech Breakthrough Multisector ETF (TECB) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +26.45% while TECB returned +31.32%. Year to date, QQQ is up 17.85% versus a gain of 23.62% for TECB.
Over three years, QQQ compounded at +26.07% per year against +26.53% for TECB; over five years the annualized figures are +15.16% and +12.70% respectively. Across the full 7-year window we track, TECB has the edge at +18.18% annualized vs +13.09%. 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 21.8% for TECB. 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 -41.6% for TECB. 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 0.96. 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 TECB charges 0.30%. On a $10,000 position that is $18 vs $30 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.30% for TECB.
Holdings Overlap
QQQ and TECB share 30 holdings out of 244 unique holdings combined, representing a 41.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or TECB?
QQQ has an expense ratio of 0.18% while TECB charges 0.30%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or TECB?
Over the past year QQQ returned +26.45% vs +31.32% for TECB, so TECB leads on 1-year performance. Over the longest common window we track (7 years), QQQ annualized +13.09% vs +18.18% for TECB. Past performance does not guarantee future results.
Which is riskier, QQQ or TECB?
QQQ has been the more volatile fund at 30.6% annualized versus 21.8% for TECB. Worst drawdown: QQQ -83.0% vs TECB -41.6%.
Should I hold both QQQ and TECB?
QQQ and TECB have a monthly-return correlation of 0.96, 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 TECB?
QQQ and TECB share 30 common holdings with a 41.4% weight overlap. Combined, they hold 244 unique securities.
Which pays a higher dividend, QQQ or TECB?
QQQ yields 0.41% while TECB yields 0.30%, so QQQ currently pays the higher dividend yield.
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