QQQ vs TMSL
QQQ vs TMSL
Invesco QQQ Trust, Series 1 vs T. Rowe Price Small-Mid Cap ETF
Quick Verdict
QQQ has a lower expense ratio. TMSL delivered stronger 1-year returns. TMSL offers more diversification with 162 holdings.
Side-by-Side Comparison
| Metric | QQQ | TMSL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.55% | |
| AUM | $455.8B | $2.8B | |
| Dividend Yield | 0.41% | 0.49% | |
| Holdings | 108 | 347 | |
| YTD Return | +17.27% | +20.77% | |
| 1Y Return | +28.64% | +33.06% | |
| 3Y Return (annualized) | +24.88% | +19.33% | |
| 5Y Return (annualized) | +14.86% | - | |
| Volatility (annualized) | 30.6% | 16.7% | |
| Max Drawdown | -83.0% | -24.7% | |
| Fund Family | Invesco (US) | T.Rowe Price | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 14, 2023 |
QQQ vs TMSL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and T. Rowe Price Small-Mid Cap ETF (TMSL) is a ETF from T.Rowe Price. Over the past year QQQ returned +28.64% while TMSL returned +33.06%. Year to date, QQQ is up 17.27% versus a gain of 20.77% for TMSL.
Over three years, QQQ compounded at +24.88% per year against +19.33% for TMSL. Across the full 3-year window we track, TMSL has the edge at +19.72% annualized vs +13.08%. 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 16.7% for TMSL. 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 -24.7% for TMSL. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TMSL charges 0.55%. On a $10,000 position that is $18 vs $55 annually, a gap of $37 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.49% for TMSL.
Holdings Overlap
QQQ and TMSL 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 TMSL?
QQQ has an expense ratio of 0.18% while TMSL charges 0.55%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, QQQ or TMSL?
Over the past year QQQ returned +28.64% vs +33.06% for TMSL, so TMSL leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.08% vs +19.72% for TMSL. Past performance does not guarantee future results.
Which is riskier, QQQ or TMSL?
QQQ has been the more volatile fund at 30.6% annualized versus 16.7% for TMSL. Worst drawdown: QQQ -83.0% vs TMSL -24.7%.
Should I hold both QQQ and TMSL?
QQQ and TMSL have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TMSL?
QQQ and TMSL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 265 unique securities.
Which pays a higher dividend, QQQ or TMSL?
QQQ yields 0.41% while TMSL yields 0.49%, so TMSL currently pays the higher dividend yield.
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