QQQ vs TSME
Invesco QQQ Trust, Series 1 vs Thrivent Small-Mid Cap Equity ETF
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 | TSME | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.65% | |
| AUM | $496.3B | $1.0B | |
| Dividend Yield | 0.44% | 0.15% | |
| Holdings | 108 | 68 | |
| YTD Return | +16.64% | +14.67% | |
| 1Y Return | +27.27% | +20.19% | |
| 3Y Return (annualized) | +25.96% | +19.73% | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 21.4% | |
| Max Drawdown | -83.0% | -26.6% | |
| Fund Family | Invesco (US) | Thrivent Funds | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Oct 5, 2022 |
QQQ vs TSME Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Thrivent Small-Mid Cap Equity ETF (TSME) is a ETF from Thrivent Funds. Over the past year QQQ returned +27.27% while TSME returned +20.19%. Year to date, QQQ is up 16.64% versus a gain of 14.67% for TSME.
Over three years, QQQ compounded at +25.96% per year against +19.73% for TSME. Across the full 4-year window we track, TSME has the edge at +18.12% annualized vs +13.03%. 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 21.4% for TSME. 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 -26.6% for TSME. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TSME charges 0.65%. On a $10,000 position that is $18 vs $65 annually, a gap of $47 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.15% for TSME.
Holdings Overlap
QQQ and TSME share 0 holdings out of 168 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 TSME?
QQQ has an expense ratio of 0.18% while TSME charges 0.65%. QQQ is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, QQQ or TSME?
Over the past year QQQ returned +27.27% vs +20.19% for TSME, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.03% vs +18.12% for TSME. Past performance does not guarantee future results.
Which is riskier, QQQ or TSME?
QQQ has been the more volatile fund at 30.6% annualized versus 21.4% for TSME. Worst drawdown: QQQ -83.0% vs TSME -26.6%.
Should I hold both QQQ and TSME?
QQQ and TSME have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TSME?
QQQ and TSME share 0 common holdings with a 0.0% weight overlap. Combined, they hold 168 unique securities.
Which pays a higher dividend, QQQ or TSME?
QQQ yields 0.44% while TSME yields 0.15%, so QQQ currently pays the higher dividend yield.
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