QQQ vs TMFE
Invesco QQQ Trust, Series 1 vs Motley Fool Capital Efficiency 100 Index ETF
Which is better, QQQ or TMFE?
Nearly the same fund. QQQ costs less.
QQQ has a lower expense ratio. QQQ led over 1Y, TMFE over 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 47.0%.
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
| Metric | QQQ | TMFE |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.50% |
| AUM | $483.5B | $77M |
| Dividend Yield | 0.44% | 0.18% |
| Holdings | 107 | 103 |
| Volatility (annualized) | 22.6% | 20.5%Best |
| Max Drawdown | -34.8% | -31.1%Best |
| $10,000 over 2.9 years | $13,035 | $13,941Best |
| Top 10 Weight | 46.5%Best | 47.0% |
| Fund Family | Invesco (US) | Motley Fool Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Mar 10, 1999 | Dec 30, 2021 |
Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized).
The two price series end 655 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. QQQ has data through Sep 15, 2026 and TMFE through Nov 29, 2024.
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Dec 31, 2021 to Nov 29, 2024 (2.9 years).
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 22.6% compared with 20.5% for TMFE. 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 -34.8% for QQQ and -31.1% for TMFE. 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 TMFE 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 0.18% for TMFE.
Holdings Overlap
40.4% of QQQ's money is in holdings TMFE also owns. 61.3% of TMFE's money is in holdings QQQ also owns.
The two portfolios partly overlap.
25 positions in common, counted across the 102 positions we hold weights for in QQQ and 100 in TMFE, against full books of 107 and 103.
What only one of them owns
Measured across the 102 and 100 positions we hold weights for.
QQQ holds 71 positions TMFE does not, 57.1% of the fund.
Largest: MSFT 5.76%, MU 4.43%, AMD 3.45%, GOOGL 3.36%, AVGO 3.16%
Top Shared Holdings
| Stock | Weight in QQQ | Weight in TMFE | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.44% | 4.89% | 3.55% |
| AAPLApple, Inc | 7.27% | 4.84% | 2.43% |
| AMZNAmazon.Com Inc | 4.67% | 4.97% | 0.30% |
| GOOGAlphabet Inc | 3.13% | 4.32% | 1.19% |
| METAMeta Platforms Inc | 2.78% | 4.60% | 1.82% |
| WMTWalmart, Inc. | 2.41% | 4.05% | 1.64% |
| COSTCostco Wholesale Corp. | 1.84% | 4.53% | 2.69% |
| NFLXNetflix, Inc. | 1.37% | 4.09% | 2.72% |
| LRCXLam Research Corp | 1.69% | 3.67% | 1.98% |
| CRWDCrowdstrike Holdings Inc | 0.94% | 2.92% | 1.98% |
61.3% of TMFE 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.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or TMFE?
QQQ has an expense ratio of 0.18% while TMFE charges 0.50%. QQQ is the cheaper option, by $32 a year on a $10,000 investment.
Which is riskier, QQQ or TMFE?
QQQ has been the more volatile fund at 22.6% annualized versus 20.5% for TMFE. Worst drawdown: QQQ -34.8% vs TMFE -31.1%.
Should I hold both QQQ and TMFE?
QQQ and TMFE 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 TMFE?
61.3% of TMFE's money is in holdings QQQ also owns. 61.3% of TMFE's is in holdings QQQ also owns. They hold 25 positions in common, counted across the 102 positions we hold weights for in QQQ and 100 in TMFE.
Which pays a higher dividend, QQQ or TMFE?
QQQ yields 0.44% while TMFE yields 0.18%, so QQQ currently pays the higher dividend yield.
Is TMFE better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, TMFE over 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 47.0%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.