QQQ vs RAAX

Quick Verdict

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

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQRAAXWinner
Expense Ratio0.18%0.69%
AUM$455.8B$1.1B
Dividend Yield0.41%2.07%
Holdings10818
YTD Return+17.27%+13.24%
1Y Return+28.64%+27.91%
3Y Return (annualized)+24.88%+18.56%
5Y Return (annualized)+14.86%+13.26%
Volatility (annualized)30.6%14.7%
Max Drawdown-83.0%-33.9%
Fund FamilyInvesco (US)VanEck
CategoryEquityAllocation/Balanced
InceptionMar 10, 1999Apr 9, 2018

QQQ vs RAAX Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and VanEck Real Assets ETF (RAAX) is a ETF from VanEck. Over the past year QQQ returned +28.64% while RAAX returned +27.91%. Year to date, QQQ is up 17.27% versus a gain of 13.24% for RAAX.

Over three years, QQQ compounded at +24.88% per year against +18.56% for RAAX; over five years the annualized figures are +14.86% and +13.26% respectively. Across the full 8-year window we track, QQQ has the edge at +13.08% annualized vs +8.98%. 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 14.7% for RAAX. 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 -33.9% for RAAX. 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while RAAX charges 0.69%. On a $10,000 position that is $18 vs $69 annually, a gap of $51 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.07% for RAAX.

Holdings Overlap

0.0%overlap

QQQ and RAAX share 0 holdings out of 119 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 RAAX?

QQQ has an expense ratio of 0.18% while RAAX charges 0.69%. QQQ is the cheaper option. On a $10,000 investment, that is $51 per year of difference.

Which performed better, QQQ or RAAX?

Over the past year QQQ returned +28.64% vs +27.91% for RAAX, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), QQQ annualized +13.08% vs +8.98% for RAAX. Past performance does not guarantee future results.

Which is riskier, QQQ or RAAX?

QQQ has been the more volatile fund at 30.6% annualized versus 14.7% for RAAX. Worst drawdown: QQQ -83.0% vs RAAX -33.9%.

Should I hold both QQQ and RAAX?

QQQ and RAAX have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and RAAX?

QQQ and RAAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 119 unique securities.

Which pays a higher dividend, QQQ or RAAX?

QQQ yields 0.41% while RAAX yields 2.07%, so RAAX currently pays the higher dividend yield.

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