QQQ vs XSMO
Invesco QQQ Trust, Series 1 vs Invesco S&P SmallCap Momentum ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. XSMO offers more diversification with 113 holdings.
Side-by-Side Comparison
| Metric | QQQ | XSMO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.36% | |
| AUM | $496.3B | $3.1B | |
| Dividend Yield | 0.44% | 0.55% | |
| Holdings | 108 | 113 | |
| YTD Return | +15.47% | +17.32% | |
| 1Y Return | +24.44% | +19.21% | |
| 3Y Return (annualized) | +25.47% | +21.00% | |
| 5Y Return (annualized) | +14.22% | +10.89% | |
| Volatility (annualized) | 30.6% | 275.0% | |
| Max Drawdown | -83.0% | -78.8% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Mar 3, 2005 |
QQQ vs XSMO Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco S&P SmallCap Momentum ETF (XSMO) is a ETF from Invesco (US). Over the past year QQQ returned +24.44% while XSMO returned +19.21%. Year to date, QQQ is up 15.47% versus a gain of 17.32% for XSMO.
Over three years, QQQ compounded at +25.47% per year against +21.00% for XSMO; over five years the annualized figures are +14.22% and +10.89% respectively. Across the full 28-year window we track, XSMO has the edge at +14.75% annualized vs +12.99%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSMO has been the more volatile fund, with annualized monthly volatility of 275.0% 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 -78.8% for XSMO. 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XSMO charges 0.36%. On a $10,000 position that is $18 vs $36 annually, a gap of $18 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.55% for XSMO.
Holdings Overlap
QQQ and XSMO share 0 holdings out of 213 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 XSMO?
QQQ has an expense ratio of 0.18% while XSMO charges 0.36%. QQQ is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, QQQ or XSMO?
Over the past year QQQ returned +24.44% vs +19.21% for XSMO, so QQQ leads on 1-year performance. Over the longest common window we track (28 years), QQQ annualized +12.99% vs +14.75% for XSMO. Past performance does not guarantee future results.
Which is riskier, QQQ or XSMO?
XSMO has been the more volatile fund at 275.0% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs XSMO -78.8%.
Should I hold both QQQ and XSMO?
QQQ and XSMO have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XSMO?
QQQ and XSMO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 213 unique securities.
Which pays a higher dividend, QQQ or XSMO?
QQQ yields 0.44% while XSMO yields 0.55%, so XSMO currently pays the higher dividend yield.
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