QQQ vs ZROZ
Invesco QQQ Trust, Series 1 vs PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund
Quick Verdict
ZROZ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | ZROZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $496.3B | $1.4B | |
| Dividend Yield | 0.44% | 5.52% | |
| Holdings | 108 | 23 | |
| YTD Return | +16.19% | -3.99% | |
| 1Y Return | +25.22% | -2.39% | |
| 3Y Return (annualized) | +25.47% | -5.70% | |
| 5Y Return (annualized) | +14.34% | -13.75% | |
| Volatility (annualized) | 30.6% | 21.7% | |
| Max Drawdown | -83.0% | -63.7% | |
| Fund Family | Invesco (US) | PIMCO (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Oct 30, 2009 |
QQQ vs ZROZ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ) is a ETF from PIMCO (US). Over the past year QQQ returned +25.22% while ZROZ returned -2.39%. Year to date, QQQ is up 16.19% versus a loss of 3.99% for ZROZ.
Over three years, QQQ compounded at +25.47% per year against -5.70% for ZROZ; over five years the annualized figures are +14.34% and -13.75% respectively. Across the full 17-year window we track, QQQ has the edge at +13.01% annualized vs -0.12%. 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 21.7% for ZROZ. 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 -63.7% for ZROZ. 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while ZROZ charges 0.15%. On a $10,000 position that is $18 vs $15 annually, a gap of $3 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 5.52% for ZROZ.
Holdings Overlap
QQQ and ZROZ share 0 holdings out of 120 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 ZROZ?
QQQ has an expense ratio of 0.18% while ZROZ charges 0.15%. ZROZ is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or ZROZ?
Over the past year QQQ returned +25.22% vs -2.39% for ZROZ, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.01% vs -0.12% for ZROZ. Past performance does not guarantee future results.
Which is riskier, QQQ or ZROZ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.7% for ZROZ. Worst drawdown: QQQ -83.0% vs ZROZ -63.7%.
Should I hold both QQQ and ZROZ?
QQQ and ZROZ have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and ZROZ?
QQQ and ZROZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 120 unique securities.
Which pays a higher dividend, QQQ or ZROZ?
QQQ yields 0.44% while ZROZ yields 5.52%, so ZROZ currently pays the higher dividend yield.
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