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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.

Updated October 16, 2026

How these figures are calculated: methodology.

Best for

  • MAGSInvestors who want higher current income (1.37% paid over the past 12 months vs 0.44% for QQQ).
  • QQQInvestors who want a growth tilt and can accept bigger swings for higher upside.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

MAGS has lagged QQQ over the trailing twelve months, posting a 13.60% total return against 18.86%. The picture flips over 3 years, though — MAGS has compounded at 32.95% a year, ahead of QQQ at 25.02%. QQQ has been the steadier holding, though — annualized volatility of 20.4% against 26.3% 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.
SymbolYTD cumulative1Y cumulative3Y annualizedSince Apr 2023Volatility Sharpe Sortino Max drawdown
MAGS8.07%13.60%32.95%36.59%26.3%0.931.36-29.9%
QQQ15.94%18.86%25.02%26.61%20.4%0.891.29-22.8%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Apr 2023” measures every fund from April 11, 2023 — the start of shared available history — 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 indexActively managed (no tracked index recorded)Nasdaq-100 Index
Last Close$71.28 as of October 16, 2026$709.80 as of October 16, 2026
Distribution rate0.62%0.42%
Trailing 12-month yield1.37%0.44%
Distribution Safety Score™ 5095
Safety-Adjusted Yield —0.40%
Expense ratio0.30%0.18%
AUM$5.71B$477B
Distribution frequencyAnnualQuarterly
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
Beta1.321.26
Last dividend$0.976179$0.75143
Ex-dividend date12/30/202509/21/2026

Bottom lineChoose MAGS if you want higher current income (1.37% paid over the past 12 months vs 0.44% for QQQ). Choose QQQ if you want a growth tilt and can accept bigger swings for higher upside.

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Income calculator

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

Roundhill Investments
ETFs57
Total AUM$31.4B

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 ETFs from Roundhill Investments
Invesco
ETFs247
Total AUM$983B

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 ETFs from Invesco

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Quick verdict

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

MAGS has paid the higher yield over the past 12 months, 1.37% vs 0.44% for QQQ. We compare trailing 12-month yields here because MAGS's latest distribution annualizes to 0.62% against 1.37% actually paid over the past 12 months, so annualizing a single payment would misstate its income.

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 ($477B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose MAGS

Roundhill Magnificent Seven ETF

  • Want higher current income — MAGS yields 1.37% paid over the past 12 months vs 0.44% for QQQ.
  • Want broad equity exposure.

Choose QQQ

Invesco QQQ Trust

  • Want a growth tilt and can accept larger swings for more upside.
  • Want to keep costs low — a 0.18% expense ratio vs 0.30% for MAGS.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, MAGS would generate roughly $62.00 cash per distribution, while QQQ would produce $10.50 cash per distribution, at current distribution rates.

MAGS yield0.62%
QQQ yield0.42%
Cash diff on $10K$51.50

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 1.32 for MAGS and 1.26 for QQQ, making QQQ the less volatile of the two by this measure.

MAGS beta1.32
QQQ beta1.26

Fund details

MAGS is managed by Roundhill Investments (launched 04/11/2023) with $5.71B in assets. QQQ is managed by Invesco (launched 03/10/1999) with $477B in assets.

MAGS AUM$5.71B
QQQ AUM$477B
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Frequently asked questions

What is the current distribution rate for MAGS and QQQ?

MAGS currently distributes 0.62% and QQQ 0.42%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is MAGS or QQQ better for dividend income?

It depends on your goals. MAGS has paid the higher trailing 12-month yield (1.37% vs 0.44%). We compare trailing 12-month yields here because MAGS's latest distribution annualizes to 0.62% against 1.37% actually paid over the past 12 months, so annualizing a single payment would misstate its income. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

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.

Is MAGS or QQQ safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — QQQ scores 95, MAGS scores 50, so QQQ's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

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, $10,000 in MAGS would generate roughly $62.00 cash per distribution ($62.00 annually). The same in QQQ would produce about $10.50 cash per distribution ($42.00 annually).

Which has performed better historically, MAGS or QQQ?

MAGS has lagged QQQ over the trailing twelve months, posting a 13.60% total return against 18.86%. The picture flips over 3 years, though — MAGS has compounded at 32.95% a year, ahead of QQQ at 25.02%. QQQ has been the steadier holding, though — annualized volatility of 20.4% against 26.3% 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 October 17, 2026.

Overview

MAGS is an actively managed ETF focused exclusively on seven mega-cap technology stocks (Apple, Microsoft, Nvidia, Tesla, Alphabet, Amazon, Meta), each held in equal weight. QQQ is a passive index ETF tracking the Nasdaq-100, which includes 100 of the largest non-financial Nasdaq stocks with market-cap weighting. The key distinction: MAGS concentrates on a single narrative and rebalances to equal weight, while QQQ offers broad large-cap growth exposure weighted by market capitalization.

How they differ

The biggest difference is concentration. MAGS holds exactly seven stocks in equal 14.3% positions, while QQQ's top seven holdings make up roughly 50% of the fund but remain individually smaller due to market-cap weighting. That means MAGS's beta of 1.32 reflects leverage-like volatility relative to the broad market, whereas QQQ's 1.26 beta is closer to the benchmark.

Second, fees and scale. QQQ charges 0.18% and holds $477B, while MAGS costs 0.30% but manages only $5.71B — a 88-fold difference in assets. That scale advantage matters for QQQ's trading liquidity and cost efficiency.

Third, income orientation.

Who each is best for

MAGS: Fits investors who believe the Magnificent Seven will outperform the broader tech sector and are comfortable with concentrated single-narrative exposure; suits those who want equal-weight rebalancing discipline over market-cap weights.

QQQ: Designed for investors seeking broad large-cap growth exposure with lower turnover and minimal active risk; appeals to those who prefer index simplicity and don't want to bet on a specific tech narrative persisting.

Key risks to know

  • Concentration risk in MAGS. Seven stocks in equal weight leaves the fund vulnerable to idiosyncratic events at any single holding; by design, MAGS has far less diversification than QQQ's 100-stock basket and sector breadth.
  • Equal-weight rebalancing drag in MAGS. Holding seven stocks in fixed 14.3% weights requires frequent rebalancing to trim winners and buy losers. If the Magnificent Seven outperform as a group, this mechanical rebalancing into laggards within the seven may underperform a buy-and-hold approach.
  • Beta and volatility. MAGS's 1.32 beta versus QQQ's 1.26 beta suggests amplified downside in market declines. The difference is modest but real during correction cycles, particularly if MAGS's concentrated seven-stock basket swings harder than the Nasdaq-100.
  • Sector overlap. Both funds lean heavily on technology and consumer discretionary mega-caps. Their holdings and performance drivers may overlap significantly, limiting diversification benefit if held together.

Bottom line

If you want narrow, equal-weighted exposure to the highest-conviction mega-cap tech stories, MAGS delivers that through active discipline at a reasonable cost. If you prefer broad large-cap growth with lower fees, better liquidity, and less rebalancing friction, QQQ is the simpler choice. Neither is better in the abstract — the decision hinges on whether you believe equal-weighting the Seven will outpace market-cap-weighted Nasdaq-100 exposure. 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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These comparisons follow the Dividend Vision methodology.