QQQ vs XJR
Invesco QQQ Trust, Series 1 vs iShares ESG Select Screened S&P Small-Cap ETF
Quick Verdict
XJR has a lower expense ratio. QQQ delivered stronger 1-year returns. XJR offers more diversification with 602 holdings.
Side-by-Side Comparison
| Metric | QQQ | XJR | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.12% | |
| AUM | $496.3B | $191M | |
| Dividend Yield | 0.44% | 0.94% | |
| Holdings | 108 | 602 | |
| YTD Return | +16.64% | +21.01% | |
| 1Y Return | +27.27% | +27.05% | |
| 3Y Return (annualized) | +25.96% | +16.00% | |
| 5Y Return (annualized) | +14.54% | +7.21% | |
| Volatility (annualized) | 30.6% | 20.4% | |
| Max Drawdown | -83.0% | -27.1% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Sep 22, 2020 |
QQQ vs XJR Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares ESG Select Screened S&P Small-Cap ETF (XJR) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +27.27% while XJR returned +27.05%. Year to date, QQQ is up 16.64% versus a gain of 21.01% for XJR.
Over three years, QQQ compounded at +25.96% per year against +16.00% for XJR; over five years the annualized figures are +14.54% and +7.21% respectively. Across the full 6-year window we track, XJR has the edge at +14.90% annualized vs +13.03%. 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 20.4% for XJR. 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 -27.1% for XJR. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XJR 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 0.94% for XJR.
Holdings Overlap
QQQ and XJR share 0 holdings out of 133 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 XJR?
QQQ has an expense ratio of 0.18% while XJR charges 0.12%. XJR is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, QQQ or XJR?
Over the past year QQQ returned +27.27% vs +27.05% for XJR, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), QQQ annualized +13.03% vs +14.90% for XJR. Past performance does not guarantee future results.
Which is riskier, QQQ or XJR?
QQQ has been the more volatile fund at 30.6% annualized versus 20.4% for XJR. Worst drawdown: QQQ -83.0% vs XJR -27.1%.
Should I hold both QQQ and XJR?
QQQ and XJR have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XJR?
QQQ and XJR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 133 unique securities.
Which pays a higher dividend, QQQ or XJR?
QQQ yields 0.44% while XJR yields 0.94%, so XJR currently pays the higher dividend yield.
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