QQQ vs TAGG
QQQ vs TAGG
Invesco QQQ Trust, Series 1 vs T Rowe Price QM US Bond ETF
Quick Verdict
TAGG has a lower expense ratio. QQQ delivered stronger 1-year returns. TAGG offers more diversification with 1212 holdings.
Side-by-Side Comparison
| Metric | QQQ | TAGG | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.08% | |
| AUM | $455.8B | $2.3B | |
| Dividend Yield | 0.41% | 4.57% | |
| Holdings | 108 | 1,595 | |
| YTD Return | +12.48% | -0.54% | |
| 1Y Return | +22.35% | +2.99% | |
| 3Y Return (annualized) | +22.30% | +4.13% | |
| 5Y Return (annualized) | +14.24% | - | |
| Volatility (annualized) | 30.6% | 6.7% | |
| Max Drawdown | -83.0% | -17.3% | |
| Fund Family | Invesco (US) | T.Rowe Price | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Sep 28, 2021 |
QQQ vs TAGG Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and T Rowe Price QM US Bond ETF (TAGG) is a ETF from T.Rowe Price. Over the past year QQQ returned +22.35% while TAGG returned +2.99%. Year to date, QQQ is up 12.48% versus a loss of 0.54% for TAGG.
Over three years, QQQ compounded at +22.30% per year against +4.13% for TAGG. Across the full 5-year window we track, QQQ has the edge at +12.91% annualized vs +0.01%. 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 6.7% for TAGG. 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 -17.3% for TAGG. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TAGG charges 0.08%. On a $10,000 position that is $18 vs $8 annually, a gap of $10 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.57% for TAGG.
Holdings Overlap
QQQ and TAGG share 0 holdings out of 1315 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 TAGG?
QQQ has an expense ratio of 0.18% while TAGG charges 0.08%. TAGG is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, QQQ or TAGG?
Over the past year QQQ returned +22.35% vs +2.99% for TAGG, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +12.91% vs +0.01% for TAGG. Past performance does not guarantee future results.
Which is riskier, QQQ or TAGG?
QQQ has been the more volatile fund at 30.6% annualized versus 6.7% for TAGG. Worst drawdown: QQQ -83.0% vs TAGG -17.3%.
Should I hold both QQQ and TAGG?
QQQ and TAGG have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TAGG?
QQQ and TAGG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1315 unique securities.
Which pays a higher dividend, QQQ or TAGG?
QQQ yields 0.41% while TAGG yields 4.57%, so TAGG currently pays the higher dividend yield.
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