QQQ vs ZTAX
Invesco QQQ Trust, Series 1 vs X-Square Municipal Income Tax Free ETF
Which is better, QQQ or ZTAX?
Large Cap Growth against Municipal Bond.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window.
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 | ZTAX |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.92% |
| AUM | $506.1B | $5M |
| Dividend Yield | 0.42% | 4.72% |
| Holdings | 321 | 33 |
| YTD Return | +19.30%Best | -6.46% |
| 1Y Return | +22.47%Best | -2.54% |
| 3Y Return (annualized) | +26.18%Best | +3.62% |
| 5Y Return (annualized) | +15.42% | - |
| Volatility (annualized) | 17.0% | 8.5%Best |
| Max Drawdown | -22.8%Best | -23.9% |
| $10,000 over 3.4 years | $22,066Best | $11,163 |
| Fund Family | Invesco (US) | X-Square Capital |
| Category | Equity | Tax Preferred |
| Style | Large Cap Growth | Municipal Bond |
| Inception | Mar 10, 1999 | May 17, 2023 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3.4 years row, are measured over the window both funds cover: May 19, 2023 to Oct 14, 2026 (3.4 years).
QQQ vs ZTAX 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 3.4 years both funds cover.
QQQ vs ZTAX Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and X-Square Municipal Income Tax Free ETF (ZTAX) is an ETF from X-Square Capital. Over the past year QQQ returned +22.47% while ZTAX returned -2.54%. Year to date, QQQ is up 19.30% versus a loss of 6.46% for ZTAX.
Over three years, QQQ compounded at +26.18% per year against +3.62% for ZTAX.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.0% compared with 8.5% for ZTAX. 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 -23.9% for ZTAX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.26. They move largely independently of each other.
Fees and Cost Over Time
QQQ charges 0.18% per year while ZTAX charges 0.92%. On a $10,000 position that is $18 vs $92 annually, a gap of $74 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 4.72% for ZTAX.
Holdings Overlap
We hold position weights for 101 holdings in QQQ and 14 in ZTAX, totalling 99.6% and 83.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 101 positions we hold weights for in QQQ and 14 in ZTAX, against full books of 321 and 33.
You are not choosing between two funds in isolation.
Whichever of QQQ and ZTAX 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, QQQ or ZTAX?
QQQ has an expense ratio of 0.18% while ZTAX charges 0.92%. QQQ is the cheaper option, by $74 a year on a $10,000 investment.
Which performed better, QQQ or ZTAX?
Over the past year QQQ returned +22.47% vs -2.54% for ZTAX, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or ZTAX?
QQQ has been the more volatile fund at 17.0% annualized versus 8.5% for ZTAX. Worst drawdown: QQQ -22.8% vs ZTAX -23.9%.
Should I hold both QQQ and ZTAX?
QQQ and ZTAX have a monthly-return correlation of 0.26, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or ZTAX?
QQQ yields 0.42% while ZTAX yields 4.72%, so ZTAX currently pays the higher dividend yield.
Is ZTAX better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.