QQQ vs ZTAX
Invesco QQQ Trust, Series 1 vs X-Square Municipal Income Tax Free 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 | ZTAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.92% | |
| AUM | $496.3B | $5M | |
| Dividend Yield | 0.44% | 4.72% | |
| Holdings | 108 | 17 | |
| YTD Return | +17.13% | -0.44% | |
| 1Y Return | +24.75% | +5.43% | |
| 3Y Return (annualized) | +24.85% | +4.81% | |
| 5Y Return (annualized) | +14.21% | - | |
| Volatility (annualized) | 30.6% | 8.2% | |
| Max Drawdown | -83.0% | -15.3% | |
| Fund Family | Invesco (US) | X-Square Capital | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | May 17, 2023 |
QQQ vs ZTAX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and X-Square Municipal Income Tax Free ETF (ZTAX) is a ETF from X-Square Capital. Over the past year QQQ returned +24.75% while ZTAX returned +5.43%. Year to date, QQQ is up 17.13% versus a loss of 0.44% for ZTAX.
Over three years, QQQ compounded at +24.85% per year against +4.81% for ZTAX. Across the full 3-year window we track, QQQ has the edge at +13.04% annualized vs +5.41%. 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 8.2% for ZTAX. 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 -15.3% for ZTAX. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while ZTAX charges 0.92%. On a $10,000 position that is $18 vs $92 annually, a gap of $74 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 4.72% for ZTAX.
Holdings Overlap
QQQ and ZTAX share 0 holdings out of 114 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 ZTAX?
QQQ has an expense ratio of 0.18% while ZTAX charges 0.92%. QQQ is the cheaper option. On a $10,000 investment, that is $74 per year of difference.
Which performed better, QQQ or ZTAX?
Over the past year QQQ returned +24.75% vs +5.43% for ZTAX, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.04% vs +5.41% for ZTAX. Past performance does not guarantee future results.
Which is riskier, QQQ or ZTAX?
QQQ has been the more volatile fund at 30.6% annualized versus 8.2% for ZTAX. Worst drawdown: QQQ -83.0% vs ZTAX -15.3%.
Should I hold both QQQ and ZTAX?
QQQ and ZTAX have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and ZTAX?
QQQ and ZTAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 114 unique securities.
Which pays a higher dividend, QQQ or ZTAX?
QQQ yields 0.44% while ZTAX yields 4.72%, so ZTAX currently pays the higher dividend yield.
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