QQQ vs TMED
QQQ vs TMED
Invesco QQQ Trust, Series 1 vs T. Rowe Price Health Care ETF
Quick Verdict
QQQ has a lower expense ratio. TMED delivered stronger 1-year returns. TMED offers more diversification with 162 holdings.
Side-by-Side Comparison
| Metric | QQQ | TMED | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.44% | |
| AUM | $455.8B | - | |
| Dividend Yield | 0.41% | - | |
| Holdings | 108 | 347 | |
| YTD Return | +18.20% | +17.55% | |
| 1Y Return | +27.63% | +48.61% | |
| 3Y Return (annualized) | +25.54% | - | |
| 5Y Return (annualized) | +15.12% | - | |
| Volatility (annualized) | 30.6% | 14.3% | |
| Max Drawdown | -83.0% | -11.1% | |
| Fund Family | Invesco (US) | T.Rowe Price | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 11, 2025 |
QQQ vs TMED Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and T. Rowe Price Health Care ETF (TMED) is a ETF from T.Rowe Price. Over the past year QQQ returned +27.63% while TMED returned +48.61%. Year to date, QQQ is up 18.20% versus a gain of 17.55% for TMED.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 14.3% for TMED. 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 -11.1% for TMED. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TMED charges 0.44%. On a $10,000 position that is $18 vs $44 annually, a gap of $26 per year that compounds over a long holding period.
Holdings Overlap
QQQ and TMED 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 TMED?
QQQ has an expense ratio of 0.18% while TMED charges 0.44%. QQQ is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, QQQ or TMED?
Over the past year QQQ returned +27.63% vs +48.61% for TMED, so TMED leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.11% vs +33.57% for TMED. Past performance does not guarantee future results.
Which is riskier, QQQ or TMED?
QQQ has been the more volatile fund at 30.6% annualized versus 14.3% for TMED. Worst drawdown: QQQ -83.0% vs TMED -11.1%.
Should I hold both QQQ and TMED?
QQQ and TMED have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TMED?
QQQ and TMED share 0 common holdings with a 0.0% weight overlap. Combined, they hold 265 unique securities.
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