QQQ vs XSEP
Invesco QQQ Trust, Series 1 vs FT Vest US Equity Enhance & Moderate Buffer ETF - September
Which is better, QQQ or XSEP?
Large Cap Growth against Option Writing.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | XSEP |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.85% |
| AUM | $483.5B | $136M |
| Dividend Yield | 0.44% | 0.00% |
| Holdings | 107 | 12 |
| YTD Return | +16.87%Best | +6.50% |
| 1Y Return | +22.98%Best | +8.81% |
| 3Y Return (annualized) | +24.98%Best | +9.43% |
| 5Y Return (annualized) | +14.39% | - |
| Volatility (annualized) | 18.0% | 5.1%Best |
| Max Drawdown | -22.8% | -9.2%Best |
| $10,000 over 4 years | $26,302Best | $15,055 |
| Fund Family | Invesco (US) | First Trust Portfolios (US) |
| Category | Equity | Alternative |
| Style | Large Cap Growth | Option Writing |
| Inception | Mar 10, 1999 | Sep 21, 2022 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 4 years row, are measured over the window both funds cover: Sep 22, 2022 to Sep 11, 2026 (4 years).
QQQ vs XSEP growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4 years both funds cover.
QQQ vs XSEP Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and FT Vest US Equity Enhance & Moderate Buffer ETF - September (XSEP) is an ETF from First Trust Portfolios (US). Over the past year QQQ returned +22.98% while XSEP returned +8.81%. Year to date, QQQ is up 16.87% versus a gain of 6.50% for XSEP.
Over three years, QQQ compounded at +24.98% per year against +9.43% for XSEP. Across the full 4-year window we track, QQQ has the edge at +27.35% annualized vs +10.77%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.0% compared with 5.1% for XSEP. 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 -22.8% for QQQ and -9.2% for XSEP. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while XSEP charges 0.85%. On a $10,000 position that is $18 vs $85 annually, a gap of $67 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.00% for XSEP.
You are not choosing between two funds in isolation.
Whichever of QQQ and XSEP you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or XSEP?
QQQ has an expense ratio of 0.18% while XSEP charges 0.85%. QQQ is the cheaper option, by $67 a year on a $10,000 investment.
Which performed better, QQQ or XSEP?
Over the past year QQQ returned +22.98% vs +8.81% for XSEP, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +27.35% vs +10.77% for XSEP. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XSEP?
QQQ has been the more volatile fund at 18.0% annualized versus 5.1% for XSEP. Worst drawdown: QQQ -22.8% vs XSEP -9.2%.
Should I hold both QQQ and XSEP?
QQQ and XSEP have a monthly-return correlation of 0.82, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or XSEP?
QQQ yields 0.44% while XSEP yields 0.00%, so QQQ currently pays the higher dividend yield.
Is XSEP better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.