QQQ vs TSEP

QQQ vs TSEP

Which is better, QQQ or TSEP?

Large Cap Growth against Option Writing.

QQQ has a lower expense ratio. QQQ led over 1Y and the full window.

Lower Fees: QQQHigher Returns: 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

MetricQQQTSEP
Expense Ratio0.18%Best0.95%
AUM$483.5B$16M
Dividend Yield0.44%0.00%
Holdings10710
YTD Return+21.71%Best+12.21%
1Y Return+25.89%Best+17.69%
3Y Return (annualized)+28.80%-
5Y Return (annualized)+15.67%-
Volatility (annualized)18.6%7.8%Best
Max Drawdown-22.8%-9.8%Best
$10,000 over 2 years$15,538Best$13,507
Fund FamilyInvesco (US)First Trust Portfolios (US)
CategoryEquityAlternative
StyleLarge Cap GrowthOption Writing
InceptionMar 10, 1999Sep 20, 2024

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown, and the $10,000 over 2 years row, are measured over the window both funds cover: Sep 23, 2024 to Sep 25, 2026 (2 years).

QQQ vs TSEP 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 2 years both funds cover.

QQQ vs TSEP Performance

Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and FT Vest Emerging Market Buffer ETF - September (TSEP) is an ETF from First Trust Portfolios (US). Over the past year QQQ returned +25.89% while TSEP returned +17.69%. Year to date, QQQ is up 21.71% versus a gain of 12.21% for TSEP.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 7.8% for TSEP. 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 -22.8% for QQQ and -9.8% for TSEP. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.58. They move together some of the time, and apart the rest.

Fees and Cost Over Time

QQQ charges 0.18% per year while TSEP charges 0.95%. On a $10,000 position that is $18 vs $95 annually, a gap of $77 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.00% for TSEP.

You are not choosing between two funds in isolation.

Whichever of QQQ and TSEP you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

QQQTSEP

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Frequently Asked Questions

Which is cheaper, QQQ or TSEP?

QQQ has an expense ratio of 0.18% while TSEP charges 0.95%. QQQ is the cheaper option, by $77 a year on a $10,000 investment.

Which performed better, QQQ or TSEP?

Over the past year QQQ returned +25.89% vs +17.69% for TSEP, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +24.65% vs +16.22% for TSEP. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, QQQ or TSEP?

QQQ has been the more volatile fund at 18.6% annualized versus 7.8% for TSEP. Worst drawdown: QQQ -22.8% vs TSEP -9.8%.

Should I hold both QQQ and TSEP?

QQQ and TSEP have a monthly-return correlation of 0.58, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, QQQ or TSEP?

QQQ yields 0.44% while TSEP yields 0.00%, so QQQ currently pays the higher dividend yield.

Is TSEP better than QQQ?

QQQ has a lower expense ratio. QQQ led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.