QQQ vs TMFE
QQQ vs TMFE
Invesco QQQ Trust, Series 1 vs Motley Fool Capital Efficiency 100 Index ETF
Quick Verdict
QQQ has a lower expense ratio. TMFE delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | TMFE | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.50% | |
| AUM | $455.8B | $77M | |
| Dividend Yield | 0.41% | 0.18% | |
| Holdings | 108 | 102 | |
| YTD Return | +18.34% | +34.98% | |
| 1Y Return | +28.94% | +39.12% | |
| 3Y Return (annualized) | +25.28% | +12.14% | |
| 5Y Return (annualized) | +15.22% | - | |
| Volatility (annualized) | 30.6% | 20.5% | |
| Max Drawdown | -83.0% | -31.1% | |
| Fund Family | Invesco (US) | Motley Fool Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 30, 2021 |
QQQ vs TMFE Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Motley Fool Capital Efficiency 100 Index ETF (TMFE) is a ETF from Motley Fool Asset Management. Over the past year QQQ returned +28.94% while TMFE returned +39.12%. Year to date, QQQ is up 18.34% versus a gain of 34.98% for TMFE.
Over three years, QQQ compounded at +25.28% per year against +12.14% for TMFE. Across the full 3-year window we track, QQQ has the edge at +13.12% annualized vs +12.14%. 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 20.5% for TMFE. 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 -31.1% for TMFE. 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while TMFE charges 0.50%. On a $10,000 position that is $18 vs $50 annually, a gap of $32 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.18% for TMFE.
Holdings Overlap
QQQ and TMFE share 26 holdings out of 178 unique holdings combined, representing a 39.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in TMFE | Difference |
|---|---|---|---|
| NVDA | 7.88% | 5.34% | 2.54% |
| AAPL | 7.46% | 5.44% | 2.02% |
| MSFT | 4.65% | 5.26% | 0.61% |
| AMZN | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| LRCX | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
| COST | Pro | Pro | Pro |
| NFLX | Pro | Pro | Pro |
See all 10 holdings QQQ shares with TMFE Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, QQQ or TMFE?
QQQ has an expense ratio of 0.18% while TMFE charges 0.50%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, QQQ or TMFE?
Over the past year QQQ returned +28.94% vs +39.12% for TMFE, so TMFE leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.12% vs +12.14% for TMFE. Past performance does not guarantee future results.
Which is riskier, QQQ or TMFE?
QQQ has been the more volatile fund at 30.6% annualized versus 20.5% for TMFE. Worst drawdown: QQQ -83.0% vs TMFE -31.1%.
Should I hold both QQQ and TMFE?
QQQ and TMFE have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and TMFE?
QQQ and TMFE share 26 common holdings with a 39.9% weight overlap. Combined, they hold 178 unique securities.
Which pays a higher dividend, QQQ or TMFE?
QQQ yields 0.41% while TMFE yields 0.18%, so QQQ currently pays the higher dividend yield.
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