QQQ vs TMFC
Invesco QQQ Trust, Series 1 vs Motley Fool 100 Index ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | TMFC | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.50% | |
| AUM | $455.8B | $2.0B | |
| Dividend Yield | 0.41% | 0.11% | |
| Holdings | 108 | 103 | |
| YTD Return | +17.46% | +11.54% | |
| 1Y Return | +26.02% | +19.46% | |
| 3Y Return (annualized) | +25.51% | +25.37% | |
| 5Y Return (annualized) | +15.12% | +14.59% | |
| Volatility (annualized) | 30.6% | 18.8% | |
| Max Drawdown | -83.0% | -33.1% | |
| Fund Family | Invesco (US) | Motley Fool Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 29, 2018 |
QQQ vs TMFC Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Motley Fool 100 Index ETF (TMFC) is a ETF from Motley Fool Asset Management. Over the past year QQQ returned +26.02% while TMFC returned +19.46%. Year to date, QQQ is up 17.46% versus a gain of 11.54% for TMFC.
Over three years, QQQ compounded at +25.51% per year against +25.37% for TMFC; over five years the annualized figures are +15.12% and +14.59% respectively. Across the full 9-year window we track, TMFC has the edge at +18.08% annualized vs +13.08%. 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 18.8% 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 -83.0% for QQQ and -33.1% for TMFC. 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 0.97. 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 0.41% against 0.11% for TMFC.
Holdings Overlap
QQQ and TMFC share 22 holdings out of 182 unique holdings combined, representing a 32.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $32 per year of difference.
Which performed better, QQQ or TMFC?
Over the past year QQQ returned +26.02% vs +19.46% for TMFC, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +13.08% vs +18.08% for TMFC. Past performance does not guarantee future results.
Which is riskier, QQQ or TMFC?
QQQ has been the more volatile fund at 30.6% annualized versus 18.8% for TMFC. Worst drawdown: QQQ -83.0% 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. 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 TMFC?
QQQ and TMFC share 22 common holdings with a 32.6% weight overlap. Combined, they hold 182 unique securities.
Which pays a higher dividend, QQQ or TMFC?
QQQ yields 0.41% while TMFC yields 0.11%, so QQQ currently pays the higher dividend yield.
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