QQQ vs XTJL

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQXTJLWinner
Expense Ratio0.18%0.79%
AUM$455.8B$13M
Dividend Yield0.41%0.00%
Holdings1085
YTD Return+17.46%+8.33%
1Y Return+26.02%+14.58%
3Y Return (annualized)+25.51%+15.20%
5Y Return (annualized)+15.12%+9.80%
Volatility (annualized)30.6%12.4%
Max Drawdown-83.0%-23.2%
Fund FamilyInvesco (US)Innovator ETFs Trust
CategoryEquityAlternative
InceptionMar 10, 1999Jun 30, 2021

QQQ vs XTJL Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Innovator US Equity Accelerated Plus ETF - July (XTJL) is a ETF from Innovator ETFs Trust. Over the past year QQQ returned +26.02% while XTJL returned +14.58%. Year to date, QQQ is up 17.46% versus a gain of 8.33% for XTJL.

Over three years, QQQ compounded at +25.51% per year against +15.20% for XTJL; over five years the annualized figures are +15.12% and +9.80% respectively. Across the full 5-year window we track, QQQ has the edge at +13.08% annualized vs +10.00%. 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 12.4% for XTJL. 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 -23.2% for XTJL. 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while XTJL charges 0.79%. On a $10,000 position that is $18 vs $79 annually, a gap of $61 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.00% for XTJL.

Frequently Asked Questions

Which is cheaper, QQQ or XTJL?

QQQ has an expense ratio of 0.18% while XTJL charges 0.79%. QQQ is the cheaper option. On a $10,000 investment, that is $61 per year of difference.

Which performed better, QQQ or XTJL?

Over the past year QQQ returned +26.02% vs +14.58% for XTJL, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.08% vs +10.00% for XTJL. Past performance does not guarantee future results.

Which is riskier, QQQ or XTJL?

QQQ has been the more volatile fund at 30.6% annualized versus 12.4% for XTJL. Worst drawdown: QQQ -83.0% vs XTJL -23.2%.

Should I hold both QQQ and XTJL?

QQQ and XTJL have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, QQQ or XTJL?

QQQ yields 0.41% while XTJL yields 0.00%, so QQQ currently pays the higher dividend yield.

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