QQQ vs XMPT
Invesco QQQ Trust, Series 1 vs VanEck CEF Municipal Income 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 | XMPT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.97% | |
| AUM | $496.3B | $219M | |
| Dividend Yield | 0.44% | 6.39% | |
| Holdings | 108 | 40 | |
| YTD Return | +16.64% | -1.87% | |
| 1Y Return | +27.27% | +5.69% | |
| 3Y Return (annualized) | +25.96% | +6.14% | |
| 5Y Return (annualized) | +14.54% | -2.77% | |
| Volatility (annualized) | 30.6% | 42.2% | |
| Max Drawdown | -83.0% | -56.3% | |
| Fund Family | Invesco (US) | VanEck | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Jul 12, 2011 |
QQQ vs XMPT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and VanEck CEF Municipal Income ETF (XMPT) is a ETF from VanEck. Over the past year QQQ returned +27.27% while XMPT returned +5.69%. Year to date, QQQ is up 16.64% versus a loss of 1.87% for XMPT.
Over three years, QQQ compounded at +25.96% per year against +6.14% for XMPT; over five years the annualized figures are +14.54% and -2.77% respectively. Across the full 15-year window we track, QQQ has the edge at +13.03% annualized vs +3.77%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XMPT has been the more volatile fund, with annualized monthly volatility of 42.2% compared with 30.6% for QQQ. 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 -56.3% for XMPT. 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 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XMPT charges 1.97%. On a $10,000 position that is $18 vs $197 annually, a gap of $179 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 6.39% for XMPT.
Holdings Overlap
QQQ and XMPT share 0 holdings out of 140 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 XMPT?
QQQ has an expense ratio of 0.18% while XMPT charges 1.97%. QQQ is the cheaper option. On a $10,000 investment, that is $179 per year of difference.
Which performed better, QQQ or XMPT?
Over the past year QQQ returned +27.27% vs +5.69% for XMPT, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), QQQ annualized +13.03% vs +3.77% for XMPT. Past performance does not guarantee future results.
Which is riskier, QQQ or XMPT?
XMPT has been the more volatile fund at 42.2% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs XMPT -56.3%.
Should I hold both QQQ and XMPT?
QQQ and XMPT have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XMPT?
QQQ and XMPT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 140 unique securities.
Which pays a higher dividend, QQQ or XMPT?
QQQ yields 0.44% while XMPT yields 6.39%, so XMPT currently pays the higher dividend yield.
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