QQQ vs XSOE
Invesco QQQ Trust, Series 1 vs WisdomTree Emerging Markets Ex-State Owned Enterprises Fund
Quick Verdict
QQQ has a lower expense ratio. XSOE delivered stronger 1-year returns. XSOE offers more diversification with 733 holdings.
Side-by-Side Comparison
| Metric | QQQ | XSOE | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.33% | |
| AUM | $455.8B | $2.0B | |
| Dividend Yield | 0.41% | 1.08% | |
| Holdings | 108 | 827 | |
| YTD Return | +19.68% | +19.37% | |
| 1Y Return | +26.75% | +34.44% | |
| 3Y Return (annualized) | +26.25% | +20.91% | |
| 5Y Return (annualized) | +15.39% | +5.79% | |
| Volatility (annualized) | 30.6% | 18.4% | |
| Max Drawdown | -83.0% | -45.2% | |
| Fund Family | Invesco (US) | WisdomTree Investments | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 10, 2014 |
QQQ vs XSOE Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and WisdomTree Emerging Markets Ex-State Owned Enterprises Fund (XSOE) is a ETF from WisdomTree Investments. Over the past year QQQ returned +26.75% while XSOE returned +34.44%. Year to date, QQQ is up 19.68% versus a gain of 19.37% for XSOE.
Over three years, QQQ compounded at +26.25% per year against +20.91% for XSOE; over five years the annualized figures are +15.39% and +5.79% respectively. Across the full 12-year window we track, QQQ has the edge at +13.15% annualized vs +6.64%. 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 18.4% for XSOE. 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 -45.2% for XSOE. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XSOE charges 0.33%. On a $10,000 position that is $18 vs $33 annually, a gap of $15 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.08% for XSOE.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, QQQ or XSOE?
QQQ has an expense ratio of 0.18% while XSOE charges 0.33%. QQQ is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, QQQ or XSOE?
Over the past year QQQ returned +26.75% vs +34.44% for XSOE, so XSOE leads on 1-year performance. Over the longest common window we track (12 years), QQQ annualized +13.15% vs +6.64% for XSOE. Past performance does not guarantee future results.
Which is riskier, QQQ or XSOE?
QQQ has been the more volatile fund at 30.6% annualized versus 18.4% for XSOE. Worst drawdown: QQQ -83.0% vs XSOE -45.2%.
Should I hold both QQQ and XSOE?
QQQ and XSOE have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XSOE?
QQQ and XSOE share 2 common holdings with a 0.7% weight overlap. Combined, they hold 834 unique securities.
Which pays a higher dividend, QQQ or XSOE?
QQQ yields 0.41% while XSOE yields 1.08%, so XSOE currently pays the higher dividend yield.
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