QQQ vs TMFX
Invesco QQQ Trust, Series 1 vs Motley Fool Next Index ETF
Which is better, QQQ or TMFX?
Large Cap Growth against Mid Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. TMFX is less concentrated, with 17.7% of the fund in its ten largest positions against 46.5%.
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 | TMFX |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.50% |
| AUM | $483.5B | $35M |
| Dividend Yield | 0.44% | 0.04% |
| Holdings | 107 | 200 |
| YTD Return | +21.18%Best | +10.18% |
| 1Y Return | +24.36%Best | +9.28% |
| 3Y Return (annualized) | +27.99%Best | +17.72% |
| 5Y Return (annualized) | +15.39% | - |
| Volatility (annualized) | 21.2% | 20.3%Best |
| Max Drawdown | -34.8% | -34.3%Best |
| $10,000 over 4.7 years | $19,076Best | $12,046 |
| Top 10 Weight | 46.5% | 17.7%Best |
| Fund Family | Invesco (US) | Motley Fool Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Growth |
| Inception | Mar 10, 1999 | Dec 30, 2021 |
Volatility and max drawdown, and the $10,000 over 4.7 years row, are measured over the window both funds cover: Dec 31, 2021 to Sep 23, 2026 (4.7 years).
QQQ vs TMFX 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 4.7 years both funds cover.
QQQ vs TMFX Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Motley Fool Next Index ETF (TMFX) is an ETF from Motley Fool Asset Management. Over the past year QQQ returned +24.36% while TMFX returned +9.28%. Year to date, QQQ is up 21.18% versus a gain of 10.18% for TMFX.
Over three years, QQQ compounded at +27.99% per year against +17.72% for TMFX.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 21.2% compared with 20.3% 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 -34.8% for QQQ and -34.3% for TMFX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.80. 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 0.44% against 0.04% for TMFX.
Holdings Overlap
0.6% of QQQ's money is in holdings TMFX also owns. 6.7% of TMFX's money is in holdings QQQ also owns.
TMFX and QQQ share little of their money.
4 positions in common, counted across the 102 positions we hold weights for in QQQ and 197 in TMFX, against full books of 107 and 200.
What only one of them owns
Measured across the 102 and 197 positions we hold weights for.
QQQ holds 92 positions TMFX does not, 97.0% of the fund.
Largest: NVDA 8.44%, AAPL 7.27%, MSFT 5.76%, AMZN 4.67%, MU 4.43%
You are not choosing between two funds in isolation.
Whichever of QQQ and TMFX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $32 a year on a $10,000 investment.
Which performed better, QQQ or TMFX?
Over the past year QQQ returned +24.36% vs +9.28% for TMFX, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or TMFX?
QQQ has been the more volatile fund at 21.2% annualized versus 20.3% for TMFX. Worst drawdown: QQQ -34.8% vs TMFX -34.3%.
Should I hold both QQQ and TMFX?
QQQ and TMFX have a monthly-return correlation of 0.80, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and TMFX?
6.7% of TMFX's money is in holdings QQQ also owns. 6.7% of TMFX's is in holdings QQQ also owns. They hold 4 positions in common, counted across the 102 positions we hold weights for in QQQ and 197 in TMFX.
Which pays a higher dividend, QQQ or TMFX?
QQQ yields 0.44% while TMFX yields 0.04%, so QQQ currently pays the higher dividend yield.
Is TMFX better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. TMFX is less concentrated, with 17.7% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.