QQQ vs SECT
QQQ vs SECT
Invesco QQQ Trust, Series 1 vs Main Sector Rotation ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | SECT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.69% | |
| AUM | $455.8B | $2.8B | |
| Dividend Yield | 0.41% | 0.72% | |
| Holdings | 108 | 14 | |
| YTD Return | +16.83% | +11.96% | |
| 1Y Return | +26.58% | +22.81% | |
| 3Y Return (annualized) | +24.70% | +18.47% | |
| 5Y Return (annualized) | +14.88% | +12.16% | |
| Volatility (annualized) | 30.6% | 20.2% | |
| Max Drawdown | -83.0% | -50.1% | |
| Fund Family | Invesco (US) | Main Management ETF Advisors, LLC | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Sep 5, 2017 |
QQQ vs SECT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Main Sector Rotation ETF (SECT) is a ETF from Main Management ETF Advisors, LLC. Over the past year QQQ returned +26.58% while SECT returned +22.81%. Year to date, QQQ is up 16.83% versus a gain of 11.96% for SECT.
Over three years, QQQ compounded at +24.70% per year against +18.47% for SECT; over five years the annualized figures are +14.88% and +12.16% respectively. Across the full 10-year window we track, QQQ has the edge at +13.06% annualized vs +7.12%. 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 20.2% for SECT. 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 -50.1% for SECT. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SECT charges 0.69%. On a $10,000 position that is $18 vs $69 annually, a gap of $51 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.72% for SECT.
Holdings Overlap
QQQ and SECT share 0 holdings out of 113 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 SECT?
QQQ has an expense ratio of 0.18% while SECT charges 0.69%. QQQ is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, QQQ or SECT?
Over the past year QQQ returned +26.58% vs +22.81% for SECT, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), QQQ annualized +13.06% vs +7.12% for SECT. Past performance does not guarantee future results.
Which is riskier, QQQ or SECT?
QQQ has been the more volatile fund at 30.6% annualized versus 20.2% for SECT. Worst drawdown: QQQ -83.0% vs SECT -50.1%.
Should I hold both QQQ and SECT?
QQQ and SECT have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SECT?
QQQ and SECT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 113 unique securities.
Which pays a higher dividend, QQQ or SECT?
QQQ yields 0.41% while SECT yields 0.72%, so SECT currently pays the higher dividend yield.
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