QQQ vs TCAF

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. TCAF offers more diversification with 162 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: TCAF

Side-by-Side Comparison

MetricQQQTCAFWinner
Expense Ratio0.18%0.31%
AUM$455.8B$7.9B
Dividend Yield0.41%0.47%
Holdings108347
YTD Return+16.83%+12.25%
1Y Return+26.58%+18.27%
3Y Return (annualized)+24.70%+18.44%
5Y Return (annualized)+14.88%-
Volatility (annualized)30.6%12.3%
Max Drawdown-83.0%-16.6%
Fund FamilyInvesco (US)T.Rowe Price
CategoryEquityEquity
InceptionMar 10, 1999Jun 14, 2023

QQQ vs TCAF Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and T. Rowe Price Capital Appreciation Equity ETF (TCAF) is a ETF from T.Rowe Price. Over the past year QQQ returned +26.58% while TCAF returned +18.27%. Year to date, QQQ is up 16.83% versus a gain of 12.25% for TCAF.

Over three years, QQQ compounded at +24.70% per year against +18.44% for TCAF. Across the full 3-year window we track, TCAF has the edge at +18.11% annualized vs +13.06%. 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 12.3% for TCAF. 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 -16.6% for TCAF. 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 TCAF charges 0.31%. On a $10,000 position that is $18 vs $31 annually, a gap of $13 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.47% for TCAF.

Holdings Overlap

0.0%overlap

QQQ and TCAF share 0 holdings out of 265 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 TCAF?

QQQ has an expense ratio of 0.18% while TCAF charges 0.31%. QQQ is the cheaper option. On a $10,000 investment, that is $13 per year of difference.

Which performed better, QQQ or TCAF?

Over the past year QQQ returned +26.58% vs +18.27% for TCAF, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.06% vs +18.11% for TCAF. Past performance does not guarantee future results.

Which is riskier, QQQ or TCAF?

QQQ has been the more volatile fund at 30.6% annualized versus 12.3% for TCAF. Worst drawdown: QQQ -83.0% vs TCAF -16.6%.

Should I hold both QQQ and TCAF?

QQQ and TCAF 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 TCAF?

QQQ and TCAF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 265 unique securities.

Which pays a higher dividend, QQQ or TCAF?

QQQ yields 0.41% while TCAF yields 0.47%, so TCAF currently pays the higher dividend yield.

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