AVGE vs QQQ
AVGE vs QQQ
Avantis All Equity Markets ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. AVGE delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | AVGE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.23% | 0.18% | |
| AUM | $1.1B | $455.8B | |
| Dividend Yield | 1.41% | 0.41% | |
| Holdings | 16 | 108 | |
| YTD Return | +14.61% | +12.48% | |
| 1Y Return | +27.79% | +22.35% | |
| 3Y Return (annualized) | +18.60% | +22.30% | |
| 5Y Return (annualized) | - | +14.24% | |
| Volatility (annualized) | 13.9% | 30.6% | |
| Max Drawdown | -17.1% | -83.0% | |
| Fund Family | Avantis Investors | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 27, 2022 | Mar 10, 1999 |
AVGE vs QQQ Performance
Avantis All Equity Markets ETF (AVGE) is a ETF from Avantis Investors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AVGE returned +27.79% while QQQ returned +22.35%. Year to date, AVGE is up 14.61% versus a gain of 12.48% for QQQ.
Over three years, AVGE compounded at +18.60% per year against +22.30% for QQQ. Across the full 4-year window we track, AVGE has the edge at +21.50% annualized vs +12.91%. 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 13.9% for AVGE. 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 -17.1% for AVGE 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AVGE charges 0.23% per year while QQQ charges 0.18%. On a $10,000 position that is $23 vs $18 annually, a gap of $5 per year that compounds over a long holding period. On income, AVGE currently yields 1.41% against 0.41% for QQQ.
Holdings Overlap
AVGE and QQQ share 0 holdings out of 118 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, AVGE or QQQ?
AVGE has an expense ratio of 0.23% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, AVGE or QQQ?
Over the past year AVGE returned +27.79% vs +22.35% for QQQ, so AVGE leads on 1-year performance. Over the longest common window we track (4 years), AVGE annualized +21.50% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, AVGE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.9% for AVGE. Worst drawdown: AVGE -17.1% vs QQQ -83.0%.
Should I hold both AVGE and QQQ?
AVGE and QQQ have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVGE and QQQ?
AVGE and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 118 unique securities.
Which pays a higher dividend, AVGE or QQQ?
AVGE yields 1.41% while QQQ yields 0.41%, so AVGE currently pays the higher dividend yield.
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