QQQ vs QUAL
QQQ vs QUAL
Invesco QQQ Trust, Series 1 vs iShares MSCI USA Quality Factor ETF
Quick Verdict
QUAL has a lower expense ratio. QQQ delivered stronger 1-year returns. QUAL offers more diversification with 127 holdings.
Side-by-Side Comparison
| Metric | QQQ | QUAL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $455.8B | $46.0B | |
| Dividend Yield | 0.41% | 0.86% | |
| Holdings | 108 | 130 | |
| YTD Return | +14.45% | +11.56% | |
| 1Y Return | +24.70% | +20.49% | |
| 3Y Return (annualized) | +24.19% | +18.67% | |
| 5Y Return (annualized) | +14.49% | +11.19% | |
| Volatility (annualized) | 30.6% | 14.7% | |
| Max Drawdown | -83.0% | -34.1% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 16, 2013 |
QQQ vs QUAL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares MSCI USA Quality Factor ETF (QUAL) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +24.70% while QUAL returned +20.49%. Year to date, QQQ is up 14.45% versus a gain of 11.56% for QUAL.
Over three years, QQQ compounded at +24.19% per year against +18.67% for QUAL; over five years the annualized figures are +14.49% and +11.19% respectively. Across the full 13-year window we track, QQQ has the edge at +12.98% annualized vs +12.63%. 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 14.7% for QUAL. 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 -34.1% for QUAL. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while QUAL 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 0.41% against 0.86% for QUAL.
Holdings Overlap
QQQ and QUAL share 35 holdings out of 195 unique holdings combined, representing a 40.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in QUAL | Difference |
|---|---|---|---|
| AAPL | 7.46% | 6.74% | 0.72% |
| NVDA | 7.88% | 5.72% | 2.16% |
| MSFT | 4.65% | 5.97% | 1.32% |
| META | Pro | Pro | Pro |
| LRCX | Pro | Pro | Pro |
| AMAT | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| KLAC | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
See all 10 holdings QQQ shares with QUAL 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, QQQ or QUAL?
QQQ has an expense ratio of 0.18% while QUAL charges 0.15%. QUAL is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or QUAL?
Over the past year QQQ returned +24.70% vs +20.49% for QUAL, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), QQQ annualized +12.98% vs +12.63% for QUAL. Past performance does not guarantee future results.
Which is riskier, QQQ or QUAL?
QQQ has been the more volatile fund at 30.6% annualized versus 14.7% for QUAL. Worst drawdown: QQQ -83.0% vs QUAL -34.1%.
Should I hold both QQQ and QUAL?
QQQ and QUAL have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and QUAL?
QQQ and QUAL share 35 common holdings with a 40.6% weight overlap. Combined, they hold 195 unique securities.
Which pays a higher dividend, QQQ or QUAL?
QQQ yields 0.41% while QUAL yields 0.86%, so QUAL currently pays the higher dividend yield.
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