QQQ vs USNZ

Quick Verdict

USNZ has a lower expense ratio. QQQ delivered stronger 1-year returns. USNZ offers more diversification with 308 holdings.

Lower Fees: USNZHigher Returns: QQQMore Diversified: USNZ

Side-by-Side Comparison

MetricQQQUSNZWinner
Expense Ratio0.18%0.10%
AUM$455.8B$287M
Dividend Yield0.41%0.97%
Holdings108308
YTD Return+18.20%+14.03%
1Y Return+27.63%+24.06%
3Y Return (annualized)+25.54%+20.71%
5Y Return (annualized)+15.12%-
Volatility (annualized)30.6%15.4%
Max Drawdown-83.0%-19.2%
Fund FamilyInvesco (US)Xtrackers ETFs
CategoryEquityEquity
InceptionMar 10, 1999Jun 27, 2022

QQQ vs USNZ Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ) is a ETF from Xtrackers ETFs. Over the past year QQQ returned +27.63% while USNZ returned +24.06%. Year to date, QQQ is up 18.20% versus a gain of 14.03% for USNZ.

Over three years, QQQ compounded at +25.54% per year against +20.71% for USNZ. Across the full 4-year window we track, USNZ has the edge at +19.85% annualized vs +13.11%. 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 15.4% for USNZ. 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 -19.2% for USNZ. 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 0.92. 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 USNZ charges 0.10%. On a $10,000 position that is $18 vs $10 annually, a gap of $8 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.97% for USNZ.

Holdings Overlap

54.7%overlap

QQQ and USNZ share 71 holdings out of 340 unique holdings combined, representing a 54.7% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in QQQWeight in USNZDifference
NVDA7.88%9.73%1.85%
AAPL7.46%9.57%2.11%
MSFT4.65%5.57%0.92%
AMZNProProPro
GOOGLProProPro
MUProProPro
GOOGProProPro
AVGOProProPro
METAProProPro
AMDProProPro
See all 10 holdings QQQ shares with USNZ
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, QQQ or USNZ?

QQQ has an expense ratio of 0.18% while USNZ charges 0.10%. USNZ is the cheaper option. On a $10,000 investment, that is $8 per year of difference.

Which performed better, QQQ or USNZ?

Over the past year QQQ returned +27.63% vs +24.06% for USNZ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.11% vs +19.85% for USNZ. Past performance does not guarantee future results.

Which is riskier, QQQ or USNZ?

QQQ has been the more volatile fund at 30.6% annualized versus 15.4% for USNZ. Worst drawdown: QQQ -83.0% vs USNZ -19.2%.

Should I hold both QQQ and USNZ?

QQQ and USNZ have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between QQQ and USNZ?

QQQ and USNZ share 71 common holdings with a 54.7% weight overlap. Combined, they hold 340 unique securities.

Which pays a higher dividend, QQQ or USNZ?

QQQ yields 0.41% while USNZ yields 0.97%, so USNZ currently pays the higher dividend yield.

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