GSC vs QQQ
GSC vs QQQ
Goldman Sachs Small Cap Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. GSC delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | GSC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $284M | $455.8B | |
| Dividend Yield | 0.13% | 0.41% | |
| Holdings | 99 | 108 | |
| YTD Return | +23.49% | +16.83% | |
| 1Y Return | +33.53% | +26.58% | |
| 3Y Return (annualized) | - | +24.70% | |
| 5Y Return (annualized) | - | +14.88% | |
| Volatility (annualized) | 18.4% | 30.6% | |
| Max Drawdown | -27.0% | -83.0% | |
| Fund Family | Goldman Sachs Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 3, 2023 | Mar 10, 1999 |
GSC vs QQQ Performance
Goldman Sachs Small Cap Equity ETF (GSC) is a ETF from Goldman Sachs Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GSC returned +33.53% while QQQ returned +26.58%. Year to date, GSC is up 23.49% versus a gain of 16.83% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 18.4% for GSC. 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 -27.0% for GSC 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
GSC charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, GSC currently yields 0.13% against 0.41% for QQQ.
Holdings Overlap
GSC and QQQ share 0 holdings out of 200 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, GSC or QQQ?
GSC has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, GSC or QQQ?
Over the past year GSC returned +33.53% vs +26.58% for QQQ, so GSC leads on 1-year performance. Over the longest common window we track (3 years), GSC annualized +21.31% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, GSC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.4% for GSC. Worst drawdown: GSC -27.0% vs QQQ -83.0%.
Should I hold both GSC and QQQ?
GSC 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 GSC and QQQ?
GSC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 200 unique securities.
Which pays a higher dividend, GSC or QQQ?
GSC yields 0.13% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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