QQQ vs TSEC

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

MetricQQQTSECWinner
Expense Ratio0.18%0.40%
AUM$455.8B$162M
Dividend Yield0.41%5.02%
Holdings108122
YTD Return+14.45%+1.47%
1Y Return+24.70%+4.54%
3Y Return (annualized)+24.19%+6.86%
5Y Return (annualized)+14.49%-
Volatility (annualized)30.6%2.5%
Max Drawdown-83.0%-1.8%
Fund FamilyInvesco (US)Touchstone Investments
CategoryEquityFixed Income
InceptionMar 10, 1999Jul 17, 2023

QQQ vs TSEC Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Touchstone Securitized Income ETF (TSEC) is a ETF from Touchstone Investments. Over the past year QQQ returned +24.70% while TSEC returned +4.54%. Year to date, QQQ is up 14.45% versus a gain of 1.47% for TSEC.

Over three years, QQQ compounded at +24.19% per year against +6.86% for TSEC. Across the full 3-year window we track, QQQ has the edge at +12.98% annualized vs +6.86%. 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 2.5% for TSEC. 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 -1.8% for TSEC. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while TSEC charges 0.40%. On a $10,000 position that is $18 vs $40 annually, a gap of $22 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 5.02% for TSEC.

Holdings Overlap

0.0%overlap

QQQ and TSEC share 0 holdings out of 123 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 TSEC?

QQQ has an expense ratio of 0.18% while TSEC charges 0.40%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.

Which performed better, QQQ or TSEC?

Over the past year QQQ returned +24.70% vs +4.54% for TSEC, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +12.98% vs +6.86% for TSEC. Past performance does not guarantee future results.

Which is riskier, QQQ or TSEC?

QQQ has been the more volatile fund at 30.6% annualized versus 2.5% for TSEC. Worst drawdown: QQQ -83.0% vs TSEC -1.8%.

Should I hold both QQQ and TSEC?

QQQ and TSEC have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and TSEC?

QQQ and TSEC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 123 unique securities.

Which pays a higher dividend, QQQ or TSEC?

QQQ yields 0.41% while TSEC yields 5.02%, so TSEC currently pays the higher dividend yield.

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