QQQ vs XMAG

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. XMAG offers more diversification with 492 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: XMAG

Side-by-Side Comparison

MetricQQQXMAGWinner
Expense Ratio0.18%0.35%
AUM$455.8B$166M
Dividend Yield0.41%0.23%
Holdings108495
YTD Return+18.20%+15.85%
1Y Return+27.63%+24.36%
3Y Return (annualized)+25.54%-
5Y Return (annualized)+15.12%-
Volatility (annualized)30.6%12.0%
Max Drawdown-83.0%-16.2%
Fund FamilyInvesco (US)Defiance ETFs, LLC
CategoryEquityEquity
InceptionMar 10, 1999Oct 21, 2024

QQQ vs XMAG Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Defiance Large Cap ex-Mag 7 ETF (XMAG) is a ETF from Defiance ETFs, LLC. Over the past year QQQ returned +27.63% while XMAG returned +24.36%. Year to date, QQQ is up 18.20% versus a gain of 15.85% for XMAG.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.0% for XMAG. 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 -16.2% for XMAG. 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while XMAG charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.23% for XMAG.

Holdings Overlap

29.1%overlap

QQQ and XMAG share 83 holdings out of 512 unique holdings combined, representing a 29.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQWeight in XMAGDifference
MU4.67%2.35%2.32%
AVGO2.91%2.83%0.08%
AMD3.85%1.87%1.98%
WMTProProPro
INTCProProPro
CSCOProProPro
AMATProProPro
COSTProProPro
LRCXProProPro
NFLXProProPro
See all 10 holdings QQQ shares with XMAG
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, QQQ or XMAG?

QQQ has an expense ratio of 0.18% while XMAG charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, QQQ or XMAG?

Over the past year QQQ returned +27.63% vs +24.36% for XMAG, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.11% vs +16.85% for XMAG. Past performance does not guarantee future results.

Which is riskier, QQQ or XMAG?

QQQ has been the more volatile fund at 30.6% annualized versus 12.0% for XMAG. Worst drawdown: QQQ -83.0% vs XMAG -16.2%.

Should I hold both QQQ and XMAG?

QQQ and XMAG have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and XMAG?

QQQ and XMAG share 83 common holdings with a 29.1% weight overlap. Combined, they hold 512 unique securities.

Which pays a higher dividend, QQQ or XMAG?

QQQ yields 0.41% while XMAG yields 0.23%, so QQQ currently pays the higher dividend yield.

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