QQQ vs TMFC

QQQ vs TMFC

Which is better, QQQ or TMFC?

Nearly the same fund. QQQ costs less.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 58.9%.

Lower Fees: QQQHigher Returns: QQQLess Concentrated: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricQQQTMFC
Expense Ratio0.18%Best0.50%
AUM$483.5B$2.1B
Dividend Yield0.44%0.11%
Holdings107104
YTD Return+17.21%Best+11.14%
1Y Return+22.10%Best+14.23%
3Y Return (annualized)+25.27%Best+25.06%
5Y Return (annualized)+14.60%Best+14.13%
Volatility (annualized)20.1%18.7%Best
Max Drawdown-35.1%-33.1%Best
$10,000 over 5 years$19,766Best$19,364
Top 10 Weight46.5%Best58.9%
Fund FamilyInvesco (US)Motley Fool Asset Management
CategoryEquityEquity
StyleLarge Cap GrowthLarge Cap Growth
InceptionMar 10, 1999Jan 29, 2018

Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2018 to Sep 17, 2026 (8.6 years).

QQQ vs TMFC growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.6 years both funds cover.

QQQ vs TMFC Performance

Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Motley Fool 100 Index ETF (TMFC) is an ETF from Motley Fool Asset Management. Over the past year QQQ returned +22.10% while TMFC returned +14.23%. Year to date, QQQ is up 17.21% versus a gain of 11.14% for TMFC.

Over three years, QQQ compounded at +25.27% per year against +25.06% for TMFC; over five years the annualized figures are +14.60% and +14.13% respectively. Across the full 9-year window we track, QQQ has the edge at +18.70% annualized vs +17.80%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 18.7% for TMFC. 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 -35.1% for QQQ and -33.1% for TMFC. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.97. 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 TMFC charges 0.50%. On a $10,000 position that is $18 vs $50 annually, a gap of $32 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.11% for TMFC.

Holdings Overlap

QQQ already in TMFC64.6%
TMFC already in QQQ71.9%

64.6% of QQQ's money is in holdings TMFC also owns. 71.9% of TMFC's money is in holdings QQQ also owns.

Most of TMFC is already inside QQQ. Owning both mostly buys the same companies twice.

44 positions in common, counted across the 102 positions we hold weights for in QQQ and 101 in TMFC, against full books of 107 and 104.

What only one of them owns

Measured across the 102 and 101 positions we hold weights for.

QQQ holds 52 positions TMFC does not, 33.0% of the fund.

Largest: MU 4.43%, GOOGL 3.36%, CSCO 2.10%, AMAT 1.86%, PLTR 1.60%

Top Shared Holdings

StockWeight in QQQWeight in TMFCDifference
NVDANvidia Corp8.44%11.13%2.69%
AAPLApple, Inc7.27%9.74%2.47%
MSFTMicrosoft Corp5.76%7.78%2.02%
GOOGAlphabet Inc3.13%8.33%5.20%
AMZNAmazon.Com Inc4.67%5.60%0.93%
AVGOBroadcom Inc3.16%3.69%0.53%
AMDAdvanced Micro Devices, Inc3.45%2.63%0.82%
WMTWalmart, Inc.2.41%2.95%0.54%
METAMeta Platforms Inc2.78%2.24%0.54%
TSLATesla Inc2.56%1.86%0.70%

71.9% of TMFC is already inside QQQ.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

QQQTMFC

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, QQQ or TMFC?

QQQ has an expense ratio of 0.18% while TMFC charges 0.50%. QQQ is the cheaper option, by $32 a year on a $10,000 investment.

Which performed better, QQQ or TMFC?

Over the past year QQQ returned +22.10% vs +14.23% for TMFC, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +18.70% vs +17.80% for TMFC. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, QQQ or TMFC?

QQQ has been the more volatile fund at 20.1% annualized versus 18.7% for TMFC. Worst drawdown: QQQ -35.1% vs TMFC -33.1%.

Should I hold both QQQ and TMFC?

QQQ and TMFC have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between QQQ and TMFC?

71.9% of TMFC's money is in holdings QQQ also owns. 71.9% of TMFC's is in holdings QQQ also owns. They hold 44 positions in common, counted across the 102 positions we hold weights for in QQQ and 101 in TMFC.

Which pays a higher dividend, QQQ or TMFC?

QQQ yields 0.44% while TMFC yields 0.11%, so QQQ currently pays the higher dividend yield.

Is TMFC better than QQQ?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 58.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.