AOA vs QQQ

Quick Verdict

AOA has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: AOAHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricAOAQQQWinner
Expense Ratio0.15%0.18%
AUM$3.2B$455.8B
Dividend Yield2.05%0.41%
Holdings11108
YTD Return+11.49%+18.20%
1Y Return+20.87%+27.63%
3Y Return (annualized)+17.10%+25.54%
5Y Return (annualized)+9.26%+15.12%
Volatility (annualized)12.9%30.6%
Max Drawdown-28.4%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryAllocation/BalancedEquity
InceptionNov 4, 2008Mar 10, 1999

AOA vs QQQ Performance

iShares Core 80/20 Aggressive Allocation ETF (AOA) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AOA returned +20.87% while QQQ returned +27.63%. Year to date, AOA is up 11.49% versus a gain of 18.20% for QQQ.

Over three years, AOA compounded at +17.10% per year against +25.54% for QQQ; over five years the annualized figures are +9.26% and +15.12% respectively. Across the full 18-year window we track, QQQ has the edge at +13.11% annualized vs +8.78%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.9% for AOA. 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 -28.4% for AOA and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

AOA charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, AOA currently yields 2.05% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

AOA and QQQ share 0 holdings out of 111 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, AOA or QQQ?

AOA has an expense ratio of 0.15% while QQQ charges 0.18%. AOA is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, AOA or QQQ?

Over the past year AOA returned +20.87% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), AOA annualized +8.78% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, AOA or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 12.9% for AOA. Worst drawdown: AOA -28.4% vs QQQ -83.0%.

Should I hold both AOA and QQQ?

AOA and QQQ have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between AOA and QQQ?

AOA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 111 unique securities.

Which pays a higher dividend, AOA or QQQ?

AOA yields 2.05% while QQQ yields 0.41%, so AOA currently pays the higher dividend yield.

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