QQQ vs TYG

QQQ vs TYG
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQTYGWinner
Expense Ratio0.18%1.49%
AUM$496.3B$1.6B
Dividend Yield0.44%11.96%
Holdings10841
YTD Return+16.64%+16.11%
1Y Return+27.27%+17.48%
3Y Return (annualized)+25.96%+26.45%
5Y Return (annualized)+14.54%+22.21%
Volatility (annualized)30.6%34.9%
Max Drawdown-83.0%-97.3%
Fund FamilyInvesco (US)TortoiseEcofin Funds
CategoryEquityEquity
InceptionMar 10, 1999Feb 27, 2004

QQQ vs TYG Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Tortoise Energy Infrastructure Corporation (TYG) is a ETF from TortoiseEcofin Funds. Over the past year QQQ returned +27.27% while TYG returned +17.48%. Year to date, QQQ is up 16.64% versus a gain of 16.11% for TYG.

Over three years, QQQ compounded at +25.96% per year against +26.45% for TYG; over five years the annualized figures are +14.54% and +22.21% respectively. Across the full 23-year window we track, QQQ has the edge at +13.03% annualized vs -1.29%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TYG has been the more volatile fund, with annualized monthly volatility of 34.9% 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 -97.3% for TYG. 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while TYG charges 1.49%. On a $10,000 position that is $18 vs $149 annually, a gap of $131 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 11.96% for TYG.

Holdings Overlap

0.6%overlap

QQQ and TYG share 2 holdings out of 133 unique holdings combined, representing a 0.6% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQWeight in TYGDifference
CEG0.42%6.15%5.73%
XEL0.21%2.63%2.42%

Frequently Asked Questions

Which is cheaper, QQQ or TYG?

QQQ has an expense ratio of 0.18% while TYG charges 1.49%. QQQ is the cheaper option. On a $10,000 investment, that is $131 per year of difference.

Which performed better, QQQ or TYG?

Over the past year QQQ returned +27.27% vs +17.48% for TYG, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.03% vs -1.29% for TYG. Past performance does not guarantee future results.

Which is riskier, QQQ or TYG?

TYG has been the more volatile fund at 34.9% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs TYG -97.3%.

Should I hold both QQQ and TYG?

QQQ and TYG have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and TYG?

QQQ and TYG share 2 common holdings with a 0.6% weight overlap. Combined, they hold 133 unique securities.

Which pays a higher dividend, QQQ or TYG?

QQQ yields 0.44% while TYG yields 11.96%, so TYG currently pays the higher dividend yield.

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