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ETF Comparison

MAGS vs QQQ: Which Is the Better Pick in 2026?

A head-to-head comparison of Roundhill Magnificent Seven ETF and Invesco QQQ Trust covering yield, cost, risk, and income potential.

Data updated September 4, 2026

Best for

  • MAGSInvestors who want broad equity exposure.
  • QQQInvestors who want higher current income (0.45% while MAGS makes no distribution).

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

MAGS has lagged QQQ over the trailing twelve months, posting a 16.35% total return against 26.73%. The picture flips over 3 years, though — MAGS has compounded at 31.51% a year, ahead of QQQ at 24.63%. QQQ has been the steadier holding, though — annualized volatility of 20.4% against 26.4% for MAGS. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3YSince Apr 2023Volatility Sharpe Sortino Max drawdown
MAGS6.26%16.35%31.51%36.98%26.4%0.871.27-29.9%
QQQ17.54%26.73%24.63%28.07%20.4%0.861.24-22.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer are annualized. “Since Apr 2023” measures every fund from April 11, 2023 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricMAGSQQQ
Full nameRoundhill Magnificent Seven ETFInvesco QQQ Trust
IssuerRoundhill InvestmentsInvesco
Underlying indexMagnificent Seven stocks (equal-weight)Nasdaq-100 Index
Last Close$69.44 as of September 4, 2026$718.96 as of September 4, 2026
Distribution yield—0.45%
Distribution Safety Score™ —97
Safety-Adjusted Yield —0.44%
Expense ratio0.30%0.18%
AUM$4.19B$484B
Distribution frequencyNoneQuarterly
ObjectiveActively managed fund that seeks capital appreciation through equal-weight exposure to the "Magnificent Seven" — a group of seven companies recognized for market dominance in technological innovation.Track the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.
Asset classEquityEquity
Inception date04/11/202303/10/1999
Beta1.331.26
Last dividend—$0.8135
Ex-dividend date12/30/202506/22/2026

Bottom lineChoose MAGS if you want broad equity exposure. Choose QQQ if you want higher current income (0.45% while MAGS makes no distribution).

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Roundhill Investments
ETFs55
Total AUM$37.2B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Roundhill Investments is known for offering innovative, specialized ETFs that often feature weekly dividend distributions and exposure to trending themes and individual mega-cap stocks. Their lineup spans income-focused strategies, leveraged products, thematic investments in areas like cryptocurrency and artificial intelligence, and weekly-pay funds that appeal to investors seeking frequent distributions. The issuer has built a distinctive niche with products targeting both traditional income seekers and those interested in emerging sectors, offering a diverse range of tickers that go well beyond conventional dividend vehicles.

See our curated list of related YouTube videos on MAGS.

See all Roundhill Investments ETFs
Invesco
ETFs246
Total AUM$992B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major ETF provider known for offering a comprehensive lineup spanning multiple asset classes and investment strategies. The company specializes in income-focused products including dividend, covered call, and bond strategies, while also maintaining broad exposure across equity, factor-based, thematic, and ESG investing themes. Invesco's portfolio ranges from index-tracking funds to alternatives and specialized offerings like digital assets and BulletShares, making it one of the more expansive ETF families available to investors.

See our curated list of related YouTube videos on QQQ.

See all Invesco ETFs

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Quick verdict

MAGS (Roundhill Magnificent Seven ETF) and QQQ (Invesco QQQ Trust) are both ETFs, but they take different approaches.

QQQ currently shows a 0.45% distribution yield. MAGS has not yet established a full distribution history, so a comparable yield figure is not available.

QQQ is cheaper with an expense ratio of 0.18% compared to 0.30%.

They have different reference exposures: MAGS is linked to Magnificent Seven stocks (equal-weight) while QQQ is linked to Nasdaq-100 Index, which means their performance drivers differ.

QQQ is the larger fund by assets ($484B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, MAGS has no reported distribution yield yet, so a monthly income estimate is not available, while QQQ would produce $3.75/month, at current distribution rates.

MAGS yield—
QQQ yield0.45%

Cost & efficiency

Over 10 years on $10,000, MAGS would cost approximately $300 in fees vs $180 for QQQ (simplified, not compounded). The $120.00 difference may be offset by yield or performance.

MAGS ER0.30%
QQQ ER0.18%

Strategy & risk

MAGS is actively managed around Magnificent Seven stocks (equal-weight) exposure with a technology approach, while QQQ tracks Nasdaq-100 Index with a growth approach. Beta is 1.33 for MAGS and 1.26 for QQQ, making QQQ the less volatile of the two by this measure.

MAGS beta1.33
QQQ beta1.26

Fund details

MAGS is managed by Roundhill Investments (launched 04/11/2023) with $4.19B in assets. QQQ is managed by Invesco (launched 03/10/1999) with $484B in assets.

MAGS AUM$4.19B
QQQ AUM$484B
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Frequently asked questions

Which of MAGS or QQQ pays more dividend income?

QQQ currently reports a distribution yield, while MAGS has not yet established a full distribution history. A direct income comparison is not yet meaningful — check back once both funds have published several consecutive distributions.

What is the difference between MAGS and QQQ?

MAGS (Roundhill Magnificent Seven ETF) is actively managed around Magnificent Seven stocks (equal-weight) exposure with a technology approach, while QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a growth approach. They are issued by Roundhill Investments and Invesco respectively.

Can I hold both MAGS and QQQ?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, MAGS or QQQ?

MAGS has an expense ratio of 0.30% while QQQ charges 0.18%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in MAGS vs QQQ generate?

At current rates, MAGS has not established a distribution history yet, so a monthly income estimate is not available. The same in QQQ would produce about $3.75 per month ($45.00 annually).

Which has performed better historically, MAGS or QQQ?

MAGS has lagged QQQ over the trailing twelve months, posting a 16.35% total return against 26.73%. The picture flips over 3 years, though — MAGS has compounded at 31.51% a year, ahead of QQQ at 24.63%. QQQ has been the steadier holding, though — annualized volatility of 20.4% against 26.4% for MAGS. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

MAGS vs QQQ — at a glance

Generated August 29, 2026.

Overview

MAGS and QQQ both track U.S. large-cap technology and growth stocks, but they differ fundamentally in construction and scope. MAGS is an actively managed equal-weight portfolio of the seven largest tech companies (the "Magnificent Seven"), while QQQ is a passively managed index fund tracking the Nasdaq-100, which holds 100 large non-financial stocks. MAGS's tight focus on mega-cap dominance contrasts sharply with QQQ's broader technology and growth exposure.

How they differ

The biggest difference is composition: MAGS holds only seven stocks in equal weight, meaning each position carries roughly 14% of the portfolio regardless of market cap. QQQ holds 100 stocks weighted by market capitalization, so its largest holdings are significantly overweighted but diversification is built in. Volatility also separates them: MAGS's beta of 1.33 signals it swings harder than the market, while QQQ's 1.26 beta still amplifies broad-market moves but with slightly less amplification.

Who each is best for

  • MAGS: Fits investors who believe the Magnificent Seven will outperform and want pure, concentrated exposure to mega-cap dominance without the drag of smaller Nasdaq constituents, and who accept higher volatility as a tradeoff.
  • QQQ: Fits investors seeking broad large-cap tech and growth exposure with built-in diversification across 100 stocks, lower turnover costs, and a longer track record of passive index tracking.

Key risks to know

  • Concentration risk in MAGS. Seven equal-weight holdings means a decline in any single mega-cap name moves the fund 14%; QQQ's 100-stock structure naturally buffers individual stock shocks.
  • Magnitude of tech correlation. Both funds are heavily exposed to technology and artificial intelligence narratives; if that sector reverses sharply, the gap between them matters less than the shared downside.
  • Higher volatility in MAGS. A beta of 1.33 means MAGS is likely to fall harder in market downturns and rise faster in rallies; this amplification compounds over time and can strain long-term plans if not matched to risk tolerance.
  • Overlap and redundancy. The Magnificent Seven names comprise a large share of QQQ's weighting, so holding both adds concentration risk rather than diversification.

Bottom line

If you want maximum exposure to the dominant mega-cap tech winners and can tolerate larger swings, MAGS's concentrated bet and active management offer simplicity. If you prefer broader tech and growth coverage with lower costs, longer history, and automatic diversification across a wider index, QQQ's passive approach is more durable. Both are liquid and low-cost, but they serve different conviction levels—not different account types or time horizons. Past performance does not guarantee future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Dividend growth vs. high yield Yield on cost, explained How expense ratios eat returns

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