QQQ vs XSHQ
QQQ vs XSHQ
Invesco QQQ Trust, Series 1 vs Invesco S&P SmallCap Quality ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. XSHQ offers more diversification with 120 holdings.
Side-by-Side Comparison
| Metric | QQQ | XSHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.29% | |
| AUM | $455.8B | $248M | |
| Dividend Yield | 0.41% | 1.17% | |
| Holdings | 108 | 118 | |
| YTD Return | +18.20% | +16.14% | |
| 1Y Return | +27.63% | +19.10% | |
| 3Y Return (annualized) | +25.54% | +10.35% | |
| 5Y Return (annualized) | +15.12% | +7.38% | |
| Volatility (annualized) | 30.6% | 19.2% | |
| Max Drawdown | -83.0% | -38.3% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Apr 3, 2017 |
QQQ vs XSHQ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco S&P SmallCap Quality ETF (XSHQ) is a ETF from Invesco (US). Over the past year QQQ returned +27.63% while XSHQ returned +19.10%. Year to date, QQQ is up 18.20% versus a gain of 16.14% for XSHQ.
Over three years, QQQ compounded at +25.54% per year against +10.35% for XSHQ; over five years the annualized figures are +15.12% and +7.38% respectively. Across the full 9-year window we track, QQQ has the edge at +13.11% annualized vs +9.15%. 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 19.2% for XSHQ. 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 -38.3% for XSHQ. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XSHQ charges 0.29%. On a $10,000 position that is $18 vs $29 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.17% for XSHQ.
Holdings Overlap
QQQ and XSHQ share 0 holdings out of 223 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 XSHQ?
QQQ has an expense ratio of 0.18% while XSHQ charges 0.29%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, QQQ or XSHQ?
Over the past year QQQ returned +27.63% vs +19.10% for XSHQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +13.11% vs +9.15% for XSHQ. Past performance does not guarantee future results.
Which is riskier, QQQ or XSHQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.2% for XSHQ. Worst drawdown: QQQ -83.0% vs XSHQ -38.3%.
Should I hold both QQQ and XSHQ?
QQQ and XSHQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XSHQ?
QQQ and XSHQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 223 unique securities.
Which pays a higher dividend, QQQ or XSHQ?
QQQ yields 0.41% while XSHQ yields 1.17%, so XSHQ currently pays the higher dividend yield.
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