QQQ vs TLTW

QQQ vs TLTW
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQTLTWWinner
Expense Ratio0.18%0.35%
AUM$496.3B$1.8B
Dividend Yield0.44%11.24%
Holdings1084
YTD Return+16.64%-6.45%
1Y Return+27.27%-2.92%
3Y Return (annualized)+25.96%-0.02%
5Y Return (annualized)+14.54%-
Volatility (annualized)30.6%12.1%
Max Drawdown-83.0%-18.6%
Fund FamilyInvesco (US)iShares by BlackRock (US)
CategoryEquityFixed Income
InceptionMar 10, 1999Aug 18, 2022

QQQ vs TLTW Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +27.27% while TLTW returned -2.92%. Year to date, QQQ is up 16.64% versus a loss of 6.45% for TLTW.

Over three years, QQQ compounded at +25.96% per year against -0.02% for TLTW. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs -2.48%. 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 12.1% for TLTW. 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 -18.6% for TLTW. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while TLTW 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 11.24% for TLTW.

Holdings Overlap

0.0%overlap

QQQ and TLTW share 0 holdings out of 104 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 TLTW?

QQQ has an expense ratio of 0.18% while TLTW 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 TLTW?

Over the past year QQQ returned +27.27% vs -2.92% for TLTW, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.03% vs -2.48% for TLTW. Past performance does not guarantee future results.

Which is riskier, QQQ or TLTW?

QQQ has been the more volatile fund at 30.6% annualized versus 12.1% for TLTW. Worst drawdown: QQQ -83.0% vs TLTW -18.6%.

Should I hold both QQQ and TLTW?

QQQ and TLTW have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and TLTW?

QQQ and TLTW share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, QQQ or TLTW?

QQQ yields 0.44% while TLTW yields 11.24%, so TLTW currently pays the higher dividend yield.

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