QQQ vs XMAG
Invesco QQQ Trust, Series 1 vs Defiance Large Cap ex-Mag 7 ETF
Which is better, QQQ or XMAG?
Large Cap Growth against Large Cap Blend.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. XMAG is less concentrated, with 18.8% of the fund in its ten largest positions against 46.7%.
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 | QQQ | XMAG |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.35% |
| AUM | $506.1B | $195M |
| Dividend Yield | 0.42% | 0.45% |
| Holdings | 321 | 494 |
| YTD Return | +19.30%Best | +13.19% |
| 1Y Return | +22.47%Best | +15.85% |
| 3Y Return (annualized) | +26.18% | - |
| 5Y Return (annualized) | +15.42% | - |
| Volatility (annualized) | 18.6% | 11.8%Best |
| Max Drawdown | -22.8% | -16.2%Best |
| $10,000 over 2 years | $14,916Best | $12,950 |
| Top 10 Weight | 46.7% | 18.8%Best |
| Fund Family | Invesco (US) | Defiance ETFs, LLC |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Oct 21, 2024 |
Volatility and max drawdown, and the $10,000 over 2 years row, are measured over the window both funds cover: Oct 22, 2024 to Oct 14, 2026 (2 years).
QQQ vs XMAG 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 years both funds cover.
QQQ vs XMAG Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Defiance Large Cap ex-Mag 7 ETF (XMAG) is an ETF from Defiance ETFs, LLC. Over the past year QQQ returned +22.47% while XMAG returned +15.85%. Year to date, QQQ is up 19.30% versus a gain of 13.19% for XMAG.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 11.8% for XMAG. 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 -22.8% for QQQ and -16.2% for XMAG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while XMAG charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 0.45% for XMAG.
Holdings Overlap
52.0% of QQQ's money is in holdings XMAG also owns. 27.1% of XMAG's money is in holdings QQQ also owns.
The two portfolios partly overlap.
78 positions in common, counted across the 101 positions we hold weights for in QQQ and 490 in XMAG, against full books of 321 and 494.
What only one of them owns
Our book lists 402 positions for XMAG that do not appear in our book for QQQ (71.7% of the fund), and 14 for QQQ that do not appear in XMAG (44.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in XMAG | Difference |
|---|---|---|---|
| MUMicron Technology, Inc. | 5.02% | 2.44% | 2.58% |
| AMDAdvanced Micro Devices Inc. | 4.17% | 1.89% | 2.28% |
| AVGOBroadcom Inc | 2.53% | 2.58% | 0.05% |
| INTCIntel Corp. | 2.64% | 0.97% | 1.67% |
| WMTWalmart, Inc. | 2.11% | 1.12% | 0.99% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.77% | 1.02% | 0.75% |
| PLTRPalantir Technologies Inc | 1.80% | 0.72% | 1.08% |
| LRCXLam Research Corp | 1.72% | 0.80% | 0.92% |
| AMATApplied Materials, Inc. | 1.70% | 0.79% | 0.91% |
| PANWPalo Alto Networks Inc. | 1.35% | 0.71% | 0.64% |
52.0% of QQQ is already inside XMAG.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, QQQ or XMAG?
QQQ has an expense ratio of 0.18% while XMAG charges 0.35%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, QQQ or XMAG?
Over the past year QQQ returned +22.47% vs +15.85% for XMAG, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +22.13% vs +13.80% for XMAG. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or XMAG?
QQQ has been the more volatile fund at 18.6% annualized versus 11.8% for XMAG. Worst drawdown: QQQ -22.8% vs XMAG -16.2%.
Should I hold both QQQ and XMAG?
QQQ and XMAG have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and XMAG?
52.0% of QQQ's money is in holdings XMAG also owns. 27.1% of XMAG's is in holdings QQQ also owns. They hold 78 positions in common, counted across the 101 positions we hold weights for in QQQ and 490 in XMAG.
Which pays a higher dividend, QQQ or XMAG?
QQQ yields 0.42% while XMAG yields 0.45%, so XMAG currently pays the higher dividend yield.
Is XMAG better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. XMAG is less concentrated, with 18.8% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.