AVGV vs QQQ

Quick Verdict

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

Lower Fees: QQQHigher Returns: AVGVMore Diversified: QQQ

Side-by-Side Comparison

MetricAVGVQQQWinner
Expense Ratio0.26%0.18%
AUM$414M$455.8B
Dividend Yield1.64%0.41%
Holdings8108
YTD Return+19.38%+18.20%
1Y Return+34.39%+27.63%
3Y Return (annualized)+20.65%+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)12.8%30.6%
Max Drawdown-17.0%-83.0%
Fund FamilyAvantis InvestorsInvesco (US)
CategoryEquityEquity
InceptionJun 27, 2023Mar 10, 1999

AVGV vs QQQ Performance

Avantis All Equity Markets Value ETF (AVGV) is a ETF from Avantis Investors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AVGV returned +34.39% while QQQ returned +27.63%. Year to date, AVGV is up 19.38% versus a gain of 18.20% for QQQ.

Over three years, AVGV compounded at +20.65% per year against +25.54% for QQQ. Across the full 3-year window we track, AVGV has the edge at +21.62% annualized vs +13.11%. 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 12.8% for AVGV. 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 -17.0% for AVGV 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

AVGV charges 0.26% per year while QQQ charges 0.18%. On a $10,000 position that is $26 vs $18 annually, a gap of $8 per year that compounds over a long holding period. On income, AVGV currently yields 1.64% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

AVGV and QQQ share 0 holdings out of 110 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, AVGV or QQQ?

AVGV has an expense ratio of 0.26% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $8 per year of difference.

Which performed better, AVGV or QQQ?

Over the past year AVGV returned +34.39% vs +27.63% for QQQ, so AVGV leads on 1-year performance. Over the longest common window we track (3 years), AVGV annualized +21.62% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, AVGV or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 12.8% for AVGV. Worst drawdown: AVGV -17.0% vs QQQ -83.0%.

Should I hold both AVGV and QQQ?

AVGV and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between AVGV and QQQ?

AVGV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 110 unique securities.

Which pays a higher dividend, AVGV or QQQ?

AVGV yields 1.64% while QQQ yields 0.41%, so AVGV currently pays the higher dividend yield.

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