QQQ vs ZTWO
Invesco QQQ Trust, Series 1 vs F/m 2-Year Investment Grade Corporate Bond ETF
Quick Verdict
ZTWO has a lower expense ratio. QQQ delivered stronger 1-year returns. ZTWO offers more diversification with 456 holdings.
Side-by-Side Comparison
| Metric | QQQ | ZTWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $496.3B | $18M | |
| Dividend Yield | 0.44% | 4.45% | |
| Holdings | 108 | 456 | |
| YTD Return | +16.23% | +1.56% | |
| 1Y Return | +26.23% | +3.42% | |
| 3Y Return (annualized) | +25.75% | - | |
| 5Y Return (annualized) | +14.78% | - | |
| Volatility (annualized) | 30.6% | 1.4% | |
| Max Drawdown | -83.0% | -0.9% | |
| Fund Family | Invesco (US) | F-m investments | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Jan 10, 2024 |
QQQ vs ZTWO Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and F/m 2-Year Investment Grade Corporate Bond ETF (ZTWO) is a ETF from F-m investments. Over the past year QQQ returned +26.23% while ZTWO returned +3.42%. Year to date, QQQ is up 16.23% versus a gain of 1.56% for ZTWO.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 1.4% for ZTWO. 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 -0.9% for ZTWO. 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 ZTWO 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 4.45% for ZTWO.
Holdings Overlap
QQQ and ZTWO share 0 holdings out of 459 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 ZTWO?
QQQ has an expense ratio of 0.18% while ZTWO charges 0.15%. ZTWO is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or ZTWO?
Over the past year QQQ returned +26.23% vs +3.42% for ZTWO, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.02% vs +4.63% for ZTWO. Past performance does not guarantee future results.
Which is riskier, QQQ or ZTWO?
QQQ has been the more volatile fund at 30.6% annualized versus 1.4% for ZTWO. Worst drawdown: QQQ -83.0% vs ZTWO -0.9%.
Should I hold both QQQ and ZTWO?
QQQ and ZTWO 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 ZTWO?
QQQ and ZTWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 459 unique securities.
Which pays a higher dividend, QQQ or ZTWO?
QQQ yields 0.44% while ZTWO yields 4.45%, so ZTWO currently pays the higher dividend yield.
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