QQQ vs TSEP
Invesco QQQ Trust, Series 1 vs FT Vest Emerging Market Buffer ETF - September
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | TSEP | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.95% | |
| AUM | $496.3B | $16M | |
| Dividend Yield | 0.44% | 0.00% | |
| Holdings | 108 | 5 | |
| YTD Return | +16.64% | +10.57% | |
| 1Y Return | +27.27% | +18.76% | |
| 3Y Return (annualized) | +25.96% | - | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 7.9% | |
| Max Drawdown | -83.0% | -9.8% | |
| Fund Family | Invesco (US) | First Trust Portfolios (US) | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Sep 20, 2024 |
QQQ vs TSEP Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and FT Vest Emerging Market Buffer ETF - September (TSEP) is a ETF from First Trust Portfolios (US). Over the past year QQQ returned +27.27% while TSEP returned +18.76%. Year to date, QQQ is up 16.64% versus a gain of 10.57% for TSEP.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 7.9% 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 -83.0% for QQQ and -9.8% for TSEP. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
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.
Holdings Overlap
QQQ and TSEP share 0 holdings out of 103 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $77 per year of difference.
Which performed better, QQQ or TSEP?
Over the past year QQQ returned +27.27% vs +18.76% for TSEP, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.03% vs +16.20% for TSEP. Past performance does not guarantee future results.
Which is riskier, QQQ or TSEP?
QQQ has been the more volatile fund at 30.6% annualized versus 7.9% for TSEP. Worst drawdown: QQQ -83.0% vs TSEP -9.8%.
Should I hold both QQQ and TSEP?
QQQ and TSEP have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TSEP?
QQQ and TSEP share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
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.
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