QQQ vs ZSEP

QQQ vs ZSEP
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQZSEPWinner
Expense Ratio0.18%0.79%
AUM$496.3B$123M
Dividend Yield0.44%0.00%
Holdings1085
YTD Return+16.19%+3.78%
1Y Return+25.22%+5.96%
3Y Return (annualized)+25.47%-
5Y Return (annualized)+14.34%-
Volatility (annualized)30.6%2.7%
Max Drawdown-83.0%-4.0%
Fund FamilyInvesco (US)Innovator ETFs Trust
CategoryEquityAlternative
InceptionMar 10, 1999Aug 31, 2024

QQQ vs ZSEP Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Innovator Equity Defined Protection ETF - 1 Yr September (ZSEP) is a ETF from Innovator ETFs Trust. Over the past year QQQ returned +25.22% while ZSEP returned +5.96%. Year to date, QQQ is up 16.19% versus a gain of 3.78% for ZSEP.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 2.7% for ZSEP. 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 -4.0% for ZSEP. 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 0.82. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while ZSEP 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 0.44% against 0.00% for ZSEP.

Frequently Asked Questions

Which is cheaper, QQQ or ZSEP?

QQQ has an expense ratio of 0.18% while ZSEP 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 ZSEP?

Over the past year QQQ returned +25.22% vs +5.96% for ZSEP, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.01% vs +6.54% for ZSEP. Past performance does not guarantee future results.

Which is riskier, QQQ or ZSEP?

QQQ has been the more volatile fund at 30.6% annualized versus 2.7% for ZSEP. Worst drawdown: QQQ -83.0% vs ZSEP -4.0%.

Should I hold both QQQ and ZSEP?

QQQ and ZSEP have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, QQQ or ZSEP?

QQQ yields 0.44% while ZSEP yields 0.00%, so QQQ currently pays the higher dividend yield.

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