Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQXMLVWinner
Expense Ratio0.18%0.25%
AUM$455.8B$757M
Dividend Yield0.41%2.93%
Holdings10883
YTD Return+18.20%+11.73%
1Y Return+27.63%+13.95%
3Y Return (annualized)+25.54%+11.74%
5Y Return (annualized)+15.12%+7.12%
Volatility (annualized)30.6%13.4%
Max Drawdown-83.0%-40.5%
Fund FamilyInvesco (US)Invesco (US)
CategoryEquityEquity
InceptionMar 10, 1999Feb 12, 2013

QQQ vs XMLV Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco S&P MidCap Low Volatility ETF (XMLV) is a ETF from Invesco (US). Over the past year QQQ returned +27.63% while XMLV returned +13.95%. Year to date, QQQ is up 18.20% versus a gain of 11.73% for XMLV.

Over three years, QQQ compounded at +25.54% per year against +11.74% for XMLV; over five years the annualized figures are +15.12% and +7.12% respectively. Across the full 14-year window we track, QQQ has the edge at +13.11% annualized vs +8.68%. 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 13.4% for XMLV. 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 -40.5% for XMLV. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while XMLV 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 0.41% against 2.93% for XMLV.

Holdings Overlap

0.0%overlap

QQQ and XMLV 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 XMLV?

QQQ has an expense ratio of 0.18% while XMLV 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 XMLV?

Over the past year QQQ returned +27.63% vs +13.95% for XMLV, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), QQQ annualized +13.11% vs +8.68% for XMLV. Past performance does not guarantee future results.

Which is riskier, QQQ or XMLV?

QQQ has been the more volatile fund at 30.6% annualized versus 13.4% for XMLV. Worst drawdown: QQQ -83.0% vs XMLV -40.5%.

Should I hold both QQQ and XMLV?

QQQ and XMLV have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and XMLV?

QQQ and XMLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 183 unique securities.

Which pays a higher dividend, QQQ or XMLV?

QQQ yields 0.41% while XMLV yields 2.93%, so XMLV currently pays the higher dividend yield.

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