QQQ vs XMHQ
Invesco QQQ Trust, Series 1 vs Invesco S&P MidCap Quality ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | XMHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.25% | |
| AUM | $496.3B | $5.7B | |
| Dividend Yield | 0.44% | 0.57% | |
| Holdings | 108 | 82 | |
| YTD Return | +16.30% | +15.62% | |
| 1Y Return | +24.83% | +15.19% | |
| 3Y Return (annualized) | +25.48% | +15.75% | |
| 5Y Return (annualized) | +14.50% | +10.78% | |
| Volatility (annualized) | 30.6% | 17.7% | |
| Max Drawdown | -83.0% | -58.4% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 1, 2006 |
QQQ vs XMHQ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco S&P MidCap Quality ETF (XMHQ) is a ETF from Invesco (US). Over the past year QQQ returned +24.83% while XMHQ returned +15.19%. Year to date, QQQ is up 16.30% versus a gain of 15.62% for XMHQ.
Over three years, QQQ compounded at +25.48% per year against +15.75% for XMHQ; over five years the annualized figures are +14.50% and +10.78% respectively. Across the full 20-year window we track, QQQ has the edge at +13.01% annualized vs +8.76%. 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 17.7% for XMHQ. 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 -58.4% for XMHQ. 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while XMHQ charges 0.25%. On a $10,000 position that is $18 vs $25 annually, a gap of $7 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.57% for XMHQ.
Holdings Overlap
QQQ and XMHQ share 0 holdings out of 183 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 XMHQ?
QQQ has an expense ratio of 0.18% while XMHQ charges 0.25%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, QQQ or XMHQ?
Over the past year QQQ returned +24.83% vs +15.19% for XMHQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), QQQ annualized +13.01% vs +8.76% for XMHQ. Past performance does not guarantee future results.
Which is riskier, QQQ or XMHQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.7% for XMHQ. Worst drawdown: QQQ -83.0% vs XMHQ -58.4%.
Should I hold both QQQ and XMHQ?
QQQ and XMHQ have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XMHQ?
QQQ and XMHQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 183 unique securities.
Which pays a higher dividend, QQQ or XMHQ?
QQQ yields 0.44% while XMHQ yields 0.57%, so XMHQ currently pays the higher dividend yield.
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