QQQ vs TWN
Invesco QQQ Trust, Series 1 vs Taiwan Fund Inc.
Quick Verdict
QQQ has a lower expense ratio. TWN delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | TWN | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.96% | |
| AUM | $496.3B | $311M | |
| Dividend Yield | 0.44% | 6.87% | |
| Holdings | 108 | 28 | |
| YTD Return | +16.64% | +78.96% | |
| 1Y Return | +27.27% | +123.86% | |
| 3Y Return (annualized) | +25.96% | +62.95% | |
| 5Y Return (annualized) | +14.54% | +32.93% | |
| Volatility (annualized) | 30.6% | 36.2% | |
| Max Drawdown | -83.0% | -70.2% | |
| Fund Family | Invesco (US) | The Taiwan Fund | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 23, 1986 |
QQQ vs TWN Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Taiwan Fund Inc. (TWN) is a ETF from The Taiwan Fund. Over the past year QQQ returned +27.27% while TWN returned +123.86%. Year to date, QQQ is up 16.64% versus a gain of 78.96% for TWN.
Over three years, QQQ compounded at +25.96% per year against +62.95% for TWN; over five years the annualized figures are +14.54% and +32.93% respectively. Across the full 27-year window we track, TWN has the edge at +13.22% annualized vs +13.03%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TWN has been the more volatile fund, with annualized monthly volatility of 36.2% compared with 30.6% for QQQ. 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 -70.2% for TWN. 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TWN charges 0.96%. On a $10,000 position that is $18 vs $96 annually, a gap of $78 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 6.87% for TWN.
Holdings Overlap
QQQ and TWN share 0 holdings out of 130 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 TWN?
QQQ has an expense ratio of 0.18% while TWN charges 0.96%. QQQ is the cheaper option. On a $10,000 investment, that is $78 per year of difference.
Which performed better, QQQ or TWN?
Over the past year QQQ returned +27.27% vs +123.86% for TWN, so TWN leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.03% vs +13.22% for TWN. Past performance does not guarantee future results.
Which is riskier, QQQ or TWN?
TWN has been the more volatile fund at 36.2% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs TWN -70.2%.
Should I hold both QQQ and TWN?
QQQ and TWN have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TWN?
QQQ and TWN share 0 common holdings with a 0.0% weight overlap. Combined, they hold 130 unique securities.
Which pays a higher dividend, QQQ or TWN?
QQQ yields 0.44% while TWN yields 6.87%, so TWN currently pays the higher dividend yield.
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