QQQ vs TXS
Invesco QQQ Trust, Series 1 vs Texas Capital Texas Equity Index ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. TXS offers more diversification with 457 holdings.
Side-by-Side Comparison
| Metric | QQQ | TXS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.49% | |
| AUM | $496.3B | $39M | |
| Dividend Yield | 0.44% | 0.78% | |
| Holdings | 108 | 457 | |
| YTD Return | +16.23% | +17.71% | |
| 1Y Return | +26.23% | +21.44% | |
| 3Y Return (annualized) | +25.75% | +20.95% | |
| 5Y Return (annualized) | +14.78% | - | |
| Volatility (annualized) | 30.6% | 14.0% | |
| Max Drawdown | -83.0% | -19.7% | |
| Fund Family | Invesco (US) | Texas Capital | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 12, 2023 |
QQQ vs TXS Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Texas Capital Texas Equity Index ETF (TXS) is a ETF from Texas Capital. Over the past year QQQ returned +26.23% while TXS returned +21.44%. Year to date, QQQ is up 16.23% versus a gain of 17.71% for TXS.
Over three years, QQQ compounded at +25.75% per year against +20.95% for TXS. Across the full 3-year window we track, TXS has the edge at +19.03% annualized vs +13.02%. 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 14.0% for TXS. 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 -19.7% for TXS. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TXS charges 0.49%. On a $10,000 position that is $18 vs $49 annually, a gap of $31 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.78% for TXS.
Holdings Overlap
QQQ and TXS share 6 holdings out of 326 unique holdings combined, representing a 5.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or TXS?
QQQ has an expense ratio of 0.18% while TXS charges 0.49%. QQQ is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, QQQ or TXS?
Over the past year QQQ returned +26.23% vs +21.44% for TXS, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.02% vs +19.03% for TXS. Past performance does not guarantee future results.
Which is riskier, QQQ or TXS?
QQQ has been the more volatile fund at 30.6% annualized versus 14.0% for TXS. Worst drawdown: QQQ -83.0% vs TXS -19.7%.
Should I hold both QQQ and TXS?
QQQ and TXS have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TXS?
QQQ and TXS share 6 common holdings with a 5.0% weight overlap. Combined, they hold 326 unique securities.
Which pays a higher dividend, QQQ or TXS?
QQQ yields 0.44% while TXS yields 0.78%, so TXS currently pays the higher dividend yield.
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