MAGG vs QQQ
MAGG vs QQQ
Madison Aggregate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MAGG offers more diversification with 145 holdings.
Side-by-Side Comparison
| Metric | MAGG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.18% | |
| AUM | $66M | $455.8B | |
| Dividend Yield | 4.75% | 0.41% | |
| Holdings | 219 | 108 | |
| YTD Return | -0.07% | +17.27% | |
| 1Y Return | +2.46% | +28.64% | |
| 3Y Return (annualized) | +4.54% | +24.88% | |
| 5Y Return (annualized) | - | +14.86% | |
| Volatility (annualized) | 5.2% | 30.6% | |
| Max Drawdown | -4.6% | -83.0% | |
| Fund Family | Madison Funds | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 28, 2023 | Mar 10, 1999 |
MAGG vs QQQ Performance
Madison Aggregate Bond ETF (MAGG) is a ETF from Madison Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MAGG returned +2.46% while QQQ returned +28.64%. Year to date, MAGG is down 0.07% versus a gain of 17.27% for QQQ.
Over three years, MAGG compounded at +4.54% per year against +24.88% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.08% annualized vs +4.54%. 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 5.2% for MAGG. 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 -4.6% for MAGG 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MAGG charges 0.36% per year while QQQ charges 0.18%. On a $10,000 position that is $36 vs $18 annually, a gap of $18 per year that compounds over a long holding period. On income, MAGG currently yields 4.75% against 0.41% for QQQ.
Holdings Overlap
MAGG and QQQ share 0 holdings out of 248 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, MAGG or QQQ?
MAGG has an expense ratio of 0.36% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, MAGG or QQQ?
Over the past year MAGG returned +2.46% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), MAGG annualized +4.54% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, MAGG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.2% for MAGG. Worst drawdown: MAGG -4.6% vs QQQ -83.0%.
Should I hold both MAGG and QQQ?
MAGG and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MAGG and QQQ?
MAGG and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 248 unique securities.
Which pays a higher dividend, MAGG or QQQ?
MAGG yields 4.75% while QQQ yields 0.41%, so MAGG currently pays the higher dividend yield.
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