QQQ vs USMC
Invesco QQQ Trust, Series 1 vs Principal U.S. Mega-Cap ETF
Which is better, QQQ or USMC?
Large Cap Growth against Large Cap Blend.
USMC has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 55.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | USMC |
|---|---|---|
| Expense Ratio | 0.18% | 0.12%Best |
| AUM | $483.5B | $5.1B |
| Dividend Yield | 0.44% | 0.74% |
| Holdings | 107 | 29 |
| YTD Return | +17.21%Best | +12.29% |
| 1Y Return | +22.10%Best | +12.99% |
| 3Y Return (annualized) | +25.27%Best | +20.96% |
| 5Y Return (annualized) | +14.60%Best | +14.48% |
| Volatility (annualized) | 19.9% | 15.4%Best |
| Max Drawdown | -35.1% | -30.0%Best |
| $10,000 over 5 years | $19,766Best | $19,663 |
| Top 10 Weight | 46.5%Best | 55.4% |
| Fund Family | Invesco (US) | Principal Funds |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Oct 11, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Oct 12, 2017 to Sep 17, 2026 (8.9 years).
QQQ vs USMC growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 8.9 years both funds cover.
QQQ vs USMC Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year QQQ returned +22.10% while USMC returned +12.99%. Year to date, QQQ is up 17.21% versus a gain of 12.29% for USMC.
Over three years, QQQ compounded at +25.27% per year against +20.96% for USMC; over five years the annualized figures are +14.60% and +14.48% respectively. Across the full 9-year window we track, QQQ has the edge at +19.78% annualized vs +14.22%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 15.4% for USMC. 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 -35.1% for QQQ and -30.0% for USMC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while USMC charges 0.12%. On a $10,000 position that is $18 vs $12 annually, a gap of $6 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.74% for USMC.
Holdings Overlap
48.0% of QQQ's money is in holdings USMC also owns. 55.8% of USMC's money is in holdings QQQ also owns.
The two portfolios partly overlap.
12 positions in common, counted across the 102 positions we hold weights for in QQQ and 27 in USMC, against full books of 107 and 29.
What only one of them owns
Measured across the 102 and 27 positions we hold weights for.
QQQ holds 84 positions USMC does not, 49.5% of the fund.
Largest: AMD 3.45%, GOOG 3.13%, INTC 2.23%, CSCO 2.10%, AMAT 1.86%
Top Shared Holdings
| Stock | Weight in QQQ | Weight in USMC | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.44% | 8.09% | 0.35% |
| AAPLApple, Inc | 7.27% | 7.06% | 0.21% |
| MUMicron Technology, Inc. | 4.43% | 7.06% | 2.63% |
| MSFTMicrosoft Corp | 5.76% | 5.69% | 0.07% |
| GOOGLAlphabet Inc,class A | 3.36% | 5.35% | 1.99% |
| AMZNAmazon.Com Inc | 4.67% | 3.81% | 0.86% |
| AVGOBroadcom Inc | 3.16% | 4.55% | 1.39% |
| METAMeta Platforms Inc | 2.78% | 3.46% | 0.68% |
| COSTCostco Wholesale Corp. | 1.84% | 3.66% | 1.82% |
| NFLXNetflix, Inc. | 1.37% | 3.31% | 1.94% |
55.8% of USMC is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, QQQ or USMC?
QQQ has an expense ratio of 0.18% while USMC charges 0.12%. USMC is the cheaper option, by $6 a year on a $10,000 investment.
Which performed better, QQQ or USMC?
Over the past year QQQ returned +22.10% vs +12.99% for USMC, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +19.78% vs +14.22% for USMC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or USMC?
QQQ has been the more volatile fund at 19.9% annualized versus 15.4% for USMC. Worst drawdown: QQQ -35.1% vs USMC -30.0%.
Should I hold both QQQ and USMC?
QQQ and USMC have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between QQQ and USMC?
55.8% of USMC's money is in holdings QQQ also owns. 55.8% of USMC's is in holdings QQQ also owns. They hold 12 positions in common, counted across the 102 positions we hold weights for in QQQ and 27 in USMC.
Which pays a higher dividend, QQQ or USMC?
QQQ yields 0.44% while USMC yields 0.74%, so USMC currently pays the higher dividend yield.
Is USMC better than QQQ?
USMC has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 55.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.