QQQ vs XYZY
Invesco QQQ Trust, Series 1 vs YieldMax XYZ Option Income Strategy 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 | XYZY | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.44% | |
| AUM | $496.3B | $45M | |
| Dividend Yield | 0.44% | 78.81% | |
| Holdings | 108 | 14 | |
| YTD Return | +16.19% | +14.60% | |
| 1Y Return | +25.22% | -4.66% | |
| 3Y Return (annualized) | +25.47% | - | |
| 5Y Return (annualized) | +14.34% | - | |
| Volatility (annualized) | 30.6% | 41.8% | |
| Max Drawdown | -83.0% | -52.3% | |
| Fund Family | Invesco (US) | YieldMax ETF | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Oct 10, 2023 |
QQQ vs XYZY Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and YieldMax XYZ Option Income Strategy ETF (XYZY) is a ETF from YieldMax ETF. Over the past year QQQ returned +25.22% while XYZY returned -4.66%. Year to date, QQQ is up 16.19% versus a gain of 14.60% for XYZY.
Risk: Volatility and Drawdowns
XYZY has been the more volatile fund, with annualized monthly volatility of 41.8% 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 -52.3% for XYZY. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XYZY charges 1.44%. On a $10,000 position that is $18 vs $144 annually, a gap of $126 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 78.81% for XYZY.
Holdings Overlap
QQQ and XYZY share 0 holdings out of 105 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 XYZY?
QQQ has an expense ratio of 0.18% while XYZY charges 1.44%. QQQ is the cheaper option. On a $10,000 investment, that is $126 per year of difference.
Which performed better, QQQ or XYZY?
Over the past year QQQ returned +25.22% vs -4.66% for XYZY, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.01% vs +12.93% for XYZY. Past performance does not guarantee future results.
Which is riskier, QQQ or XYZY?
XYZY has been the more volatile fund at 41.8% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs XYZY -52.3%.
Should I hold both QQQ and XYZY?
QQQ and XYZY have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XYZY?
QQQ and XYZY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, QQQ or XYZY?
QQQ yields 0.44% while XYZY yields 78.81%, so XYZY currently pays the higher dividend yield.
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