ALAI vs QQQ
Alger AI Enablers & Adopters ETF vs Invesco QQQ Trust, Series 1
Which is better, ALAI or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. ALAI led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ALAI | QQQ |
|---|---|---|
| Expense Ratio | 0.58% | 0.18%Best |
| AUM | $1.6B | $506.1B |
| Dividend Yield | 1.16% | 0.42% |
| Holdings | 72 | 321 |
| YTD Return | +23.19%Best | +19.30% |
| 1Y Return | +22.58%Best | +22.47% |
| 3Y Return (annualized) | - | +26.18% |
| 5Y Return (annualized) | - | +15.42% |
| Volatility (annualized) | 25.4% | 17.3%Best |
| Max Drawdown | -29.4% | -22.8%Best |
| $10,000 over 2.5 years | $22,583Best | $16,684 |
| Fund Family | Alger | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Apr 4, 2024 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2.5 years row, are measured over the window both funds cover: Apr 5, 2024 to Oct 14, 2026 (2.5 years).
ALAI vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.5 years both funds cover.
ALAI vs QQQ Performance
Alger AI Enablers & Adopters ETF (ALAI) is an ETF from Alger and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ALAI returned +22.58% while QQQ returned +22.47%. Year to date, ALAI is up 23.19% versus a gain of 19.30% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ALAI has been the more volatile fund, with annualized monthly volatility of 25.4% compared with 17.3% for QQQ. 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 -29.4% for ALAI and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
ALAI charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, ALAI currently yields 1.16% against 0.42% for QQQ.
Holdings Overlap
At least 4.2% of QQQ's money is in holdings ALAI also owns.
Stated as a floor: for ALAI, our book for it covers 2.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
QQQ and ALAI share little of their money.
1 positions in common, counted across the 1 positions we hold weights for in ALAI and 101 in QQQ, against full books of 72 and 321.
Top Shared Holdings
| Stock | Weight in ALAI | Weight in QQQ | Difference |
|---|---|---|---|
| AMDAdvanced Micro Devices Inc | 2.21% | 4.17% | 1.96% |
You are not choosing between two funds in isolation.
Whichever of ALAI and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ALAI or QQQ?
ALAI has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option, by $40 a year on a $10,000 investment.
Which performed better, ALAI or QQQ?
Over the past year ALAI returned +22.58% vs +22.47% for QQQ, so ALAI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ALAI or QQQ?
ALAI has been the more volatile fund at 25.4% annualized versus 17.3% for QQQ. Worst drawdown: ALAI -29.4% vs QQQ -22.8%.
Should I hold both ALAI and QQQ?
ALAI and QQQ have a monthly-return correlation of 0.95, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between ALAI and QQQ?
At least 4.2% of QQQ's money is in holdings ALAI also owns. Our book for ALAI is partial, so the real figure is this or higher. They hold 1 positions in common, counted across the 1 positions we hold weights for in ALAI and 101 in QQQ.
Which pays a higher dividend, ALAI or QQQ?
ALAI yields 1.16% while QQQ yields 0.42%, so ALAI currently pays the higher dividend yield.
Is QQQ better than ALAI?
QQQ has a lower expense ratio. ALAI led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95. Which one suits a particular account depends on what it is for. This is information, not a recommendation.