QQQ vs TAXE

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. TAXE offers more diversification with 171 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: TAXE

Side-by-Side Comparison

MetricQQQTAXEWinner
Expense Ratio0.18%0.24%
AUM$455.8B$192M
Dividend Yield0.41%3.58%
Holdings108347
YTD Return+14.45%+0.65%
1Y Return+24.70%+4.81%
3Y Return (annualized)+24.19%-
5Y Return (annualized)+14.49%-
Volatility (annualized)30.6%3.5%
Max Drawdown-83.0%-3.7%
Fund FamilyInvesco (US)T.Rowe Price
CategoryEquityFixed Income
InceptionMar 10, 1999Jul 10, 2024

QQQ vs TAXE Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and T. Rowe Price Intermediate Municipal Income ETF (TAXE) is a ETF from T.Rowe Price. Over the past year QQQ returned +24.70% while TAXE returned +4.81%. Year to date, QQQ is up 14.45% versus a gain of 0.65% for TAXE.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.5% for TAXE. 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 -3.7% for TAXE. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while TAXE charges 0.24%. On a $10,000 position that is $18 vs $24 annually, a gap of $6 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.58% for TAXE.

Holdings Overlap

0.0%overlap

QQQ and TAXE share 0 holdings out of 274 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 TAXE?

QQQ has an expense ratio of 0.18% while TAXE charges 0.24%. QQQ is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, QQQ or TAXE?

Over the past year QQQ returned +24.70% vs +4.81% for TAXE, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +12.98% vs +3.93% for TAXE. Past performance does not guarantee future results.

Which is riskier, QQQ or TAXE?

QQQ has been the more volatile fund at 30.6% annualized versus 3.5% for TAXE. Worst drawdown: QQQ -83.0% vs TAXE -3.7%.

Should I hold both QQQ and TAXE?

QQQ and TAXE have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and TAXE?

QQQ and TAXE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 274 unique securities.

Which pays a higher dividend, QQQ or TAXE?

QQQ yields 0.41% while TAXE yields 3.58%, so TAXE currently pays the higher dividend yield.

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