QQQ vs TAXM
QQQ vs TAXM
Invesco QQQ Trust, Series 1 vs BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents
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 | TAXM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $455.8B | $39M | |
| Dividend Yield | 0.41% | 3.31% | |
| Holdings | 108 | 143 | |
| YTD Return | +16.83% | +0.21% | |
| 1Y Return | +26.58% | +4.20% | |
| 3Y Return (annualized) | +24.70% | - | |
| 5Y Return (annualized) | +14.88% | - | |
| Volatility (annualized) | 30.6% | 3.6% | |
| Max Drawdown | -83.0% | -3.1% | |
| Fund Family | Invesco (US) | BondBloxx | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Mar 13, 2025 |
QQQ vs TAXM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and BondBloxx IR+M Tax-Aware ETF for Massachusetts Residents (TAXM) is a ETF from BondBloxx. Over the past year QQQ returned +26.58% while TAXM returned +4.20%. Year to date, QQQ is up 16.83% versus a gain of 0.21% for TAXM.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.6% for TAXM. 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 -3.1% for TAXM. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TAXM charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.31% for TAXM.
Holdings Overlap
QQQ and TAXM share 0 holdings out of 173 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 TAXM?
QQQ has an expense ratio of 0.18% while TAXM charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or TAXM?
Over the past year QQQ returned +26.58% vs +4.20% for TAXM, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.06% vs +2.81% for TAXM. Past performance does not guarantee future results.
Which is riskier, QQQ or TAXM?
QQQ has been the more volatile fund at 30.6% annualized versus 3.6% for TAXM. Worst drawdown: QQQ -83.0% vs TAXM -3.1%.
Should I hold both QQQ and TAXM?
QQQ and TAXM have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TAXM?
QQQ and TAXM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 173 unique securities.
Which pays a higher dividend, QQQ or TAXM?
QQQ yields 0.41% while TAXM yields 3.31%, so TAXM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.