QQQ vs XSHD
Invesco QQQ Trust, Series 1 vs Invesco S&P SmallCap High Dividend Low Volatility 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 | XSHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.30% | |
| AUM | $496.3B | $72M | |
| Dividend Yield | 0.44% | 4.90% | |
| Holdings | 108 | 55 | |
| YTD Return | +16.64% | +11.88% | |
| 1Y Return | +27.27% | +10.22% | |
| 3Y Return (annualized) | +25.96% | +2.96% | |
| 5Y Return (annualized) | +14.54% | -3.47% | |
| Volatility (annualized) | 30.6% | 21.6% | |
| Max Drawdown | -83.0% | -49.5% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 1, 2016 |
QQQ vs XSHD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD) is a ETF from Invesco (US). Over the past year QQQ returned +27.27% while XSHD returned +10.22%. Year to date, QQQ is up 16.64% versus a gain of 11.88% for XSHD.
Over three years, QQQ compounded at +25.96% per year against +2.96% for XSHD; over five years the annualized figures are +14.54% and -3.47% respectively. Across the full 10-year window we track, QQQ has the edge at +13.03% annualized vs -0.24%. 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 21.6% for XSHD. 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 -49.5% for XSHD. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XSHD charges 0.30%. On a $10,000 position that is $18 vs $30 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 4.90% for XSHD.
Holdings Overlap
QQQ and XSHD share 0 holdings out of 155 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 XSHD?
QQQ has an expense ratio of 0.18% while XSHD charges 0.30%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or XSHD?
Over the past year QQQ returned +27.27% vs +10.22% for XSHD, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), QQQ annualized +13.03% vs -0.24% for XSHD. Past performance does not guarantee future results.
Which is riskier, QQQ or XSHD?
QQQ has been the more volatile fund at 30.6% annualized versus 21.6% for XSHD. Worst drawdown: QQQ -83.0% vs XSHD -49.5%.
Should I hold both QQQ and XSHD?
QQQ and XSHD have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XSHD?
QQQ and XSHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 155 unique securities.
Which pays a higher dividend, QQQ or XSHD?
QQQ yields 0.44% while XSHD yields 4.90%, so XSHD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.