QQQ vs TDSC

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQTDSCWinner
Expense Ratio0.18%0.90%
AUM$455.8B$101M
Dividend Yield0.41%1.61%
Holdings10811
YTD Return+16.83%+11.00%
1Y Return+26.58%+17.25%
3Y Return (annualized)+24.70%+10.25%
5Y Return (annualized)+14.88%+2.63%
Volatility (annualized)30.6%9.5%
Max Drawdown-83.0%-21.5%
Fund FamilyInvesco (US)The Cabana Group, LLC
CategoryEquityAllocation/Balanced
InceptionMar 10, 1999Sep 16, 2020

QQQ vs TDSC Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ETC Cabana Target Drawdown 10 ETF (TDSC) is a ETF from The Cabana Group, LLC. Over the past year QQQ returned +26.58% while TDSC returned +17.25%. Year to date, QQQ is up 16.83% versus a gain of 11.00% for TDSC.

Over three years, QQQ compounded at +24.70% per year against +10.25% for TDSC; over five years the annualized figures are +14.88% and +2.63% respectively. Across the full 6-year window we track, QQQ has the edge at +13.06% annualized vs +3.94%. 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 9.5% for TDSC. 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 -21.5% for TDSC. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while TDSC charges 0.90%. On a $10,000 position that is $18 vs $90 annually, a gap of $72 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.61% for TDSC.

Holdings Overlap

0.0%overlap

QQQ and TDSC 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 TDSC?

QQQ has an expense ratio of 0.18% while TDSC charges 0.90%. QQQ is the cheaper option. On a $10,000 investment, that is $72 per year of difference.

Which performed better, QQQ or TDSC?

Over the past year QQQ returned +26.58% vs +17.25% for TDSC, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), QQQ annualized +13.06% vs +3.94% for TDSC. Past performance does not guarantee future results.

Which is riskier, QQQ or TDSC?

QQQ has been the more volatile fund at 30.6% annualized versus 9.5% for TDSC. Worst drawdown: QQQ -83.0% vs TDSC -21.5%.

Should I hold both QQQ and TDSC?

QQQ and TDSC have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and TDSC?

QQQ and TDSC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 113 unique securities.

Which pays a higher dividend, QQQ or TDSC?

QQQ yields 0.41% while TDSC yields 1.61%, so TDSC currently pays the higher dividend yield.

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