QQQ vs XTWO
QQQ vs XTWO
Invesco QQQ Trust, Series 1 vs BondBloxx Bloomberg Two Year Target Duration US Treasury ETF
Quick Verdict
XTWO has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | XTWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $455.8B | $206M | |
| Dividend Yield | 0.41% | 4.07% | |
| Holdings | 108 | 97 | |
| YTD Return | +18.20% | +0.60% | |
| 1Y Return | +27.63% | +2.46% | |
| 3Y Return (annualized) | +25.54% | +4.11% | |
| 5Y Return (annualized) | +15.12% | - | |
| Volatility (annualized) | 30.6% | 1.9% | |
| Max Drawdown | -83.0% | -1.7% | |
| Fund Family | Invesco (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Sep 13, 2022 |
QQQ vs XTWO Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and BondBloxx Bloomberg Two Year Target Duration US Treasury ETF (XTWO) is a ETF from BondBloxx. Over the past year QQQ returned +27.63% while XTWO returned +2.46%. Year to date, QQQ is up 18.20% versus a gain of 0.60% for XTWO.
Over three years, QQQ compounded at +25.54% per year against +4.11% for XTWO. Across the full 4-year window we track, QQQ has the edge at +13.11% annualized vs +3.60%. 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 1.9% for XTWO. 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 -1.7% for XTWO. 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XTWO charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.07% for XTWO.
Holdings Overlap
QQQ and XTWO share 0 holdings out of 180 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 XTWO?
QQQ has an expense ratio of 0.18% while XTWO charges 0.05%. XTWO is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, QQQ or XTWO?
Over the past year QQQ returned +27.63% vs +2.46% for XTWO, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.11% vs +3.60% for XTWO. Past performance does not guarantee future results.
Which is riskier, QQQ or XTWO?
QQQ has been the more volatile fund at 30.6% annualized versus 1.9% for XTWO. Worst drawdown: QQQ -83.0% vs XTWO -1.7%.
Should I hold both QQQ and XTWO?
QQQ and XTWO have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XTWO?
QQQ and XTWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 180 unique securities.
Which pays a higher dividend, QQQ or XTWO?
QQQ yields 0.41% while XTWO yields 4.07%, so XTWO currently pays the higher dividend yield.
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