# QQQ vs QQQM: fees, holdings and returns compared

> QQQ vs QQQM: what each ETF holds, what it costs, and how both did over the same dates, with yearly returns and worst drops.

QQQ and QQQM both track the Nasdaq-100, so they hold the same about 100 companies. QQQM charges a lower yearly fee. QQQ trades in much larger amounts each day. Over the same dates since October 2020, QQQ returned about 16.4% a year and QQQM returned about 16.5% a year.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 16, 2026. Prices through October 16, 2026.

## Key points

- QQQM costs less: 0.15% a year against 0.18%.
- QQQ started trading in March 1999. QQQM started in October 2020.
- Worst drops since 2020: QQQ −35.1%, QQQM −35.0%.
- Daily correlation: 1.00 (1 means they always move together).

## What is the difference between QQQ and QQQM?

The holdings are the same. Invesco launched QQQM in 2020 as a lower-cost version for long-term investors. QQQ, launched in 1999, has a much larger daily trading volume and a busy options market, which traders value. Over long periods the lower fee gives QQQM a small edge, all else equal.

| Fact | QQQ | QQQM |
| --- | --- | --- |
| Full name | Invesco QQQ Trust, Series 1 | Invesco NASDAQ 100 ETF |
| Issuer | Invesco | Invesco |
| Expense ratio | 0.18% a year | 0.15% a year |
| Started trading | March 10, 1999 | October 13, 2020 |
| Tracks | Nasdaq-100 Index | Nasdaq-100 Index |
| Holdings | n/a | n/a |
| Type | US stocks, ETF | US stocks, ETF |

Fund facts checked on the [Invesco QQQ page](https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=QQQ) and the [Invesco QQQM page](https://www.sec.gov/Archives/edgar/data/1378872/000119312525325643/d54028d497k.htm).

## Is QQQ or QQQM cheaper?

QQQM costs less: 0.15% a year against 0.18%. On $10,000, that is about $18 a year for QQQ and $15 for QQQM. The fund takes its fee out of its own value a little each day, so you never get a bill.

## QQQ vs QQQM performance over the same dates

Both funds are measured from October 2020 to October 2026, the dates both traded. QQQ returned about 16.4% a year and QQQM returned about 16.5% a year. QQQM came out ahead over this period, which does not mean it will again.

| Measure | QQQ | QQQM |
| --- | --- | --- |
| $10,000 grew to | $24,964 | $25,048 |
| Total return | 149.6% | 150.5% |
| Return per year (CAGR) | 16.4% | 16.5% |
| Worst drop from a high | −35.1% | −35.0% |
| Volatility (how much it swings) | 22.3% | 22.2% |
| Last 12 months | 18.9% | 18.9% |
| Last 3 years, per year | 25.0% | 25.1% |
| Last 5 years, per year | 14.7% | 14.7% |

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## QQQ and QQQM returns by year

| Year | QQQ | QQQM |
| --- | --- | --- |
| 2026 (part of the year) | 15.9% | 16.0% |
| 2025 | 20.8% | 20.8% |
| 2024 | 25.6% | 25.7% |
| 2023 | 54.9% | 55.0% |
| 2022 | −32.6% | −32.5% |
| 2021 | 27.4% | 27.5% |
| 2020 (part of the year) | 6.7% | 6.7% |

## Which fell further in bad times?

A drawdown is how far a fund falls from its last high point. QQQ's worst fall was −35.1%, from December 27, 2021 to November 3, 2022. It got back to that high on December 13, 2023.

QQQM's worst fall was −35.0%, from November 19, 2021 to November 3, 2022. It got back to that high on December 12, 2023.

Their daily moves had a correlation of 1.00. A correlation of 1 means two funds always move up and down together. Near 0 means they move on their own. So holding both adds little variety.

## Why people choose QQQ or QQQM

**QQQ.** Active traders and options traders often pick QQQ because so much trades every day.

**QQQM.** Buy-and-hold investors often pick QQQM for its lower fee on the same index.

## Strategies that hold QQQ or QQQM

These classic strategies hold one or both at least some of the time. Each is a set of written rules you can open, test and copy.

- [Bold Asset Allocation (BAA)](https://tactfolio.com/strategies/bold-asset-allocation.md), by Wouter Keller, 2022 (holds QQQ)
- [Defensive Asset Allocation (DAA)](https://tactfolio.com/strategies/defensive-asset-allocation.md), by Wouter Keller and JW Keuning, 2018 (holds QQQ)
- [Protective Asset Allocation (PAA)](https://tactfolio.com/strategies/protective-asset-allocation.md), by Wouter Keller and JW Keuning, 2016 (holds QQQ)
- [Vigilant Asset Allocation G12 (VAA-G12)](https://tactfolio.com/strategies/vigilant-asset-allocation-g12.md), by Wouter Keller and JW Keuning, 2017 (holds QQQ)
- [Bold Asset Allocation G4 (BAA aggressive)](https://tactfolio.com/strategies/bold-asset-allocation-g4.md), by Wouter Keller, 2022 (holds QQQ)
- [Quint Switching Filtered (Lewis Glenn’s QSF)](https://tactfolio.com/strategies/quint-switching-filtered.md), by Lewis A. Glenn, 2018 (holds QQQ)
- [Lethargic Asset Allocation (Keller’s LAA)](https://tactfolio.com/strategies/lethargic-asset-allocation.md), by Wouter J. Keller, 2019 (holds QQQ)
- [Resilient Asset Allocation (Keller’s RAA)](https://tactfolio.com/strategies/resilient-asset-allocation.md), by Wouter J. Keller, 2020 (holds QQQ)
- [Pragmatic Asset Allocation (Quantpedia’s PAA)](https://tactfolio.com/strategies/pragmatic-asset-allocation.md), by Radovan Vojtko and Juliána Javorská (Quantpedia), 2024 (holds QQQ)

## Other funds like QQQ and QQQM

Each fund has more funds that hold the same kind of investments, ranked by how closely they move with it: [QQQ alternatives](https://tactfolio.com/alternatives/QQQ.md) and [QQQM alternatives](https://tactfolio.com/alternatives/QQQM.md).

## Test a mix of QQQ and QQQM

Open the [builder](https://tactfolio.com/builder), add QQQ and QQQM, and give each a weight, such as 50% and 50%. The backtest shows how the mix would have done, with its worst drop, on daily prices. You can also add a rule, for example to switch between them, and compare. Read the full pages for [QQQ](https://tactfolio.com/etf/QQQ.md) and [QQQM](https://tactfolio.com/etf/QQQM.md), or see [more ETF comparisons](https://tactfolio.com/etf-comparisons.md).

## The details

Both funds use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. They are compared only on days both traded, starting the later fund's first day, so neither gets a head start. Correlation uses daily returns over the same days. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### Is QQQM the same as QQQ?

They track the same index and hold the same companies. QQQM has a lower yearly fee and a lower share price. QQQ trades far more each day.

### Why does QQQ have a longer history than QQQM?

QQQ started in 1999 and QQQM in 2020. That is why the comparison above starts in late 2020, when both were trading.

### Which is cheaper, QQQ or QQQM?

QQQM costs less: 0.15% a year against 0.18%. Fees come from each issuer and were checked on October 16, 2026.

### Which did better, QQQ or QQQM?

From October 2020 to October 2026, QQQ returned about 16.4% a year and QQQM returned about 16.5% a year, with dividends reinvested. Their worst drops were −35.1% and −35.0%. Past returns do not tell you what comes next.

## Sources

- [Invesco: Invesco QQQ Trust, Series 1 fund page](https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=QQQ)
- [Invesco: Invesco NASDAQ 100 ETF fund page](https://www.sec.gov/Archives/edgar/data/1378872/000119312525325643/d54028d497k.htm)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.