ALAI vs QQQ
ALAI vs QQQ
Alger AI Enablers & Adopters ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. ALAI delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | ALAI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.18% | |
| AUM | $461M | $455.8B | |
| Dividend Yield | 1.19% | 0.41% | |
| Holdings | 59 | 108 | |
| YTD Return | +23.63% | +17.27% | |
| 1Y Return | +40.70% | +28.64% | |
| 3Y Return (annualized) | - | +24.88% | |
| 5Y Return (annualized) | - | +14.86% | |
| Volatility (annualized) | 25.9% | 30.6% | |
| Max Drawdown | -29.4% | -83.0% | |
| Fund Family | Alger | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 4, 2024 | Mar 10, 1999 |
ALAI vs QQQ Performance
Alger AI Enablers & Adopters ETF (ALAI) is a ETF from Alger and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ALAI returned +40.70% while QQQ returned +28.64%. Year to date, ALAI is up 23.63% versus a gain of 17.27% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 25.9% for ALAI. 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 -29.4% for ALAI and -83.0% for QQQ. 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
ALAI charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, ALAI currently yields 1.19% against 0.41% for QQQ.
Holdings Overlap
ALAI and QQQ share 24 holdings out of 142 unique holdings combined, representing a 38.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ALAI | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 14.00% | 7.88% | 6.12% |
| AAPL | 3.10% | 7.46% | 4.36% |
| MSFT | 5.33% | 4.65% | 0.68% |
| AMZN | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| WDC | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
See all 10 holdings ALAI shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, ALAI or QQQ?
ALAI has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, ALAI or QQQ?
Over the past year ALAI returned +40.70% vs +28.64% for QQQ, so ALAI leads on 1-year performance. Over the longest common window we track (2 years), ALAI annualized +42.49% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, ALAI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 25.9% for ALAI. Worst drawdown: ALAI -29.4% vs QQQ -83.0%.
Should I hold both ALAI and QQQ?
ALAI and QQQ have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between ALAI and QQQ?
ALAI and QQQ share 24 common holdings with a 38.1% weight overlap. Combined, they hold 142 unique securities.
Which pays a higher dividend, ALAI or QQQ?
ALAI yields 1.19% while QQQ yields 0.41%, so ALAI currently pays the higher dividend yield.
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