QQQ vs TLTD
Invesco QQQ Trust, Series 1 vs FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. TLTD offers more diversification with 2,408 holdings.
Side-by-Side Comparison
| Metric | QQQ | TLTD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.39% | |
| AUM | $496.3B | $691M | |
| Dividend Yield | 0.44% | 3.29% | |
| Holdings | 108 | 2,408 | |
| YTD Return | +16.23% | +12.95% | |
| 1Y Return | +26.23% | +23.64% | |
| 3Y Return (annualized) | +25.75% | +22.19% | |
| 5Y Return (annualized) | +14.78% | +11.26% | |
| Volatility (annualized) | 30.6% | 15.1% | |
| Max Drawdown | -83.0% | -44.6% | |
| Fund Family | Invesco (US) | Flexshares Trust | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Sep 25, 2012 |
QQQ vs TLTD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund (TLTD) is a ETF from Flexshares Trust. Over the past year QQQ returned +26.23% while TLTD returned +23.64%. Year to date, QQQ is up 16.23% versus a gain of 12.95% for TLTD.
Over three years, QQQ compounded at +25.75% per year against +22.19% for TLTD; over five years the annualized figures are +14.78% and +11.26% respectively. Across the full 14-year window we track, QQQ has the edge at +13.02% annualized vs +6.94%. 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 15.1% for TLTD. 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 -44.6% for TLTD. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TLTD charges 0.39%. On a $10,000 position that is $18 vs $39 annually, a gap of $21 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.29% for TLTD.
Holdings Overlap
QQQ and TLTD share 4 holdings out of 2417 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or TLTD?
QQQ has an expense ratio of 0.18% while TLTD charges 0.39%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, QQQ or TLTD?
Over the past year QQQ returned +26.23% vs +23.64% for TLTD, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), QQQ annualized +13.02% vs +6.94% for TLTD. Past performance does not guarantee future results.
Which is riskier, QQQ or TLTD?
QQQ has been the more volatile fund at 30.6% annualized versus 15.1% for TLTD. Worst drawdown: QQQ -83.0% vs TLTD -44.6%.
Should I hold both QQQ and TLTD?
QQQ and TLTD have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TLTD?
QQQ and TLTD share 4 common holdings with a 0.5% weight overlap. Combined, they hold 2417 unique securities.
Which pays a higher dividend, QQQ or TLTD?
QQQ yields 0.44% while TLTD yields 3.29%, so TLTD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.