QQQ vs QVMS

Quick Verdict

QVMS has a lower expense ratio. QVMS delivered stronger 1-year returns. QVMS offers more diversification with 531 holdings.

Lower Fees: QVMSHigher Returns: QVMSMore Diversified: QVMS

Side-by-Side Comparison

MetricQQQQVMSWinner
Expense Ratio0.18%0.15%
AUM$455.8B$251M
Dividend Yield0.41%1.13%
Holdings108537
YTD Return+18.34%+25.08%
1Y Return+28.94%+38.05%
3Y Return (annualized)+25.28%+15.27%
5Y Return (annualized)+15.22%+9.40%
Volatility (annualized)30.6%20.0%
Max Drawdown-83.0%-28.4%
Fund FamilyInvesco (US)Invesco (US)
CategoryEquityEquity
InceptionMar 10, 1999Jun 28, 2021

QQQ vs QVMS Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco S&P SmallCap 600 QVM Multi-factor ETF (QVMS) is a ETF from Invesco (US). Over the past year QQQ returned +28.94% while QVMS returned +38.05%. Year to date, QQQ is up 18.34% versus a gain of 25.08% for QVMS.

Over three years, QQQ compounded at +25.28% per year against +15.27% for QVMS; over five years the annualized figures are +15.22% and +9.40% respectively. Across the full 5-year window we track, QQQ has the edge at +13.12% annualized vs +8.46%. 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 20.0% for QVMS. 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 -83.0% for QQQ and -28.4% for QVMS. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while QVMS charges 0.15%. On a $10,000 position that is $18 vs $15 annually, a gap of $3 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.13% for QVMS.

Holdings Overlap

0.0%overlap

QQQ and QVMS share 0 holdings out of 634 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, QQQ or QVMS?

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

Which performed better, QQQ or QVMS?

Over the past year QQQ returned +28.94% vs +38.05% for QVMS, so QVMS leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.12% vs +8.46% for QVMS. Past performance does not guarantee future results.

Which is riskier, QQQ or QVMS?

QQQ has been the more volatile fund at 30.6% annualized versus 20.0% for QVMS. Worst drawdown: QQQ -83.0% vs QVMS -28.4%.

Should I hold both QQQ and QVMS?

QQQ and QVMS have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and QVMS?

QQQ and QVMS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 634 unique securities.

Which pays a higher dividend, QQQ or QVMS?

QQQ yields 0.41% while QVMS yields 1.13%, so QVMS currently pays the higher dividend yield.

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