QQQ vs TMFX
Invesco QQQ Trust, Series 1 vs Motley Fool Next Index ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. TMFX offers more diversification with 190 holdings.
Side-by-Side Comparison
| Metric | QQQ | TMFX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.50% | |
| AUM | $455.8B | $33M | |
| Dividend Yield | 0.41% | 0.05% | |
| Holdings | 108 | 191 | |
| YTD Return | +19.68% | +13.51% | |
| 1Y Return | +26.75% | +16.09% | |
| 3Y Return (annualized) | +26.25% | +16.13% | |
| 5Y Return (annualized) | +15.39% | - | |
| Volatility (annualized) | 30.6% | 20.4% | |
| Max Drawdown | -83.0% | -34.3% | |
| Fund Family | Invesco (US) | Motley Fool Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 30, 2021 |
QQQ vs TMFX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Motley Fool Next Index ETF (TMFX) is a ETF from Motley Fool Asset Management. Over the past year QQQ returned +26.75% while TMFX returned +16.09%. Year to date, QQQ is up 19.68% versus a gain of 13.51% for TMFX.
Over three years, QQQ compounded at +26.25% per year against +16.13% for TMFX. Across the full 5-year window we track, QQQ has the edge at +13.15% annualized vs +4.81%. 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 20.4% for TMFX. 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 -34.3% for TMFX. 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while TMFX 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 0.05% for TMFX.
Holdings Overlap
QQQ and TMFX share 3 holdings out of 290 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 TMFX?
QQQ has an expense ratio of 0.18% while TMFX 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 TMFX?
Over the past year QQQ returned +26.75% vs +16.09% for TMFX, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.15% vs +4.81% for TMFX. Past performance does not guarantee future results.
Which is riskier, QQQ or TMFX?
QQQ has been the more volatile fund at 30.6% annualized versus 20.4% for TMFX. Worst drawdown: QQQ -83.0% vs TMFX -34.3%.
Should I hold both QQQ and TMFX?
QQQ and TMFX have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TMFX?
QQQ and TMFX share 3 common holdings with a 0.5% weight overlap. Combined, they hold 290 unique securities.
Which pays a higher dividend, QQQ or TMFX?
QQQ yields 0.41% while TMFX yields 0.05%, so QQQ currently pays the higher dividend yield.
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