QQQ vs RAFE
QQQ vs RAFE
Invesco QQQ Trust, Series 1 vs PIMCO RAFI ESG US ETF
Quick Verdict
QQQ has a lower expense ratio. RAFE delivered stronger 1-year returns. RAFE offers more diversification with 279 holdings.
Side-by-Side Comparison
| Metric | QQQ | RAFE | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.29% | |
| AUM | $455.8B | $165M | |
| Dividend Yield | 0.41% | 1.51% | |
| Holdings | 108 | 285 | |
| YTD Return | +18.20% | +19.12% | |
| 1Y Return | +27.63% | +33.09% | |
| 3Y Return (annualized) | +25.54% | +19.80% | |
| 5Y Return (annualized) | +15.12% | +11.89% | |
| Volatility (annualized) | 30.6% | 16.7% | |
| Max Drawdown | -83.0% | -35.7% | |
| Fund Family | Invesco (US) | PIMCO (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 18, 2019 |
QQQ vs RAFE Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and PIMCO RAFI ESG US ETF (RAFE) is a ETF from PIMCO (US). Over the past year QQQ returned +27.63% while RAFE returned +33.09%. Year to date, QQQ is up 18.20% versus a gain of 19.12% for RAFE.
Over three years, QQQ compounded at +25.54% per year against +19.80% for RAFE; over five years the annualized figures are +15.12% and +11.89% respectively. Across the full 7-year window we track, QQQ has the edge at +13.11% annualized vs +12.47%. 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 16.7% for RAFE. 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 -35.7% for RAFE. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while RAFE charges 0.29%. On a $10,000 position that is $18 vs $29 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.51% for RAFE.
Holdings Overlap
QQQ and RAFE share 47 holdings out of 335 unique holdings combined, representing a 29.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in RAFE | Difference |
|---|---|---|---|
| AAPL | 7.46% | 5.43% | 2.03% |
| NVDA | 7.88% | 1.41% | 6.47% |
| MSFT | 4.65% | 3.94% | 0.71% |
| AMD | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
| AMAT | Pro | Pro | Pro |
| LRCX | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
See all 10 holdings QQQ shares with RAFE Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, QQQ or RAFE?
QQQ has an expense ratio of 0.18% while RAFE charges 0.29%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, QQQ or RAFE?
Over the past year QQQ returned +27.63% vs +33.09% for RAFE, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), QQQ annualized +13.11% vs +12.47% for RAFE. Past performance does not guarantee future results.
Which is riskier, QQQ or RAFE?
QQQ has been the more volatile fund at 30.6% annualized versus 16.7% for RAFE. Worst drawdown: QQQ -83.0% vs RAFE -35.7%.
Should I hold both QQQ and RAFE?
QQQ and RAFE have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RAFE?
QQQ and RAFE share 47 common holdings with a 29.6% weight overlap. Combined, they hold 335 unique securities.
Which pays a higher dividend, QQQ or RAFE?
QQQ yields 0.41% while RAFE yields 1.51%, so RAFE currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.