QQQ vs RAVI
QQQ vs RAVI
Invesco QQQ Trust, Series 1 vs FlexShares Ultra Short Income Fund
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. RAVI offers more diversification with 195 holdings.
Side-by-Side Comparison
| Metric | QQQ | RAVI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.25% | |
| AUM | $455.8B | $1.5B | |
| Dividend Yield | 0.41% | 4.37% | |
| Holdings | 108 | 254 | |
| YTD Return | +18.34% | +1.78% | |
| 1Y Return | +28.94% | +3.75% | |
| 3Y Return (annualized) | +25.28% | +4.95% | |
| 5Y Return (annualized) | +15.22% | +3.54% | |
| Volatility (annualized) | 30.6% | 1.2% | |
| Max Drawdown | -83.0% | -3.8% | |
| Fund Family | Invesco (US) | Flexshares Trust | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Oct 9, 2012 |
QQQ vs RAVI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and FlexShares Ultra Short Income Fund (RAVI) is a ETF from Flexshares Trust. Over the past year QQQ returned +28.94% while RAVI returned +3.75%. Year to date, QQQ is up 18.34% versus a gain of 1.78% for RAVI.
Over three years, QQQ compounded at +25.28% per year against +4.95% for RAVI; over five years the annualized figures are +15.22% and +3.54% respectively. Across the full 14-year window we track, QQQ has the edge at +13.12% annualized vs +1.40%. 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 1.2% for RAVI. 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 -3.8% for RAVI. 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while RAVI charges 0.25%. On a $10,000 position that is $18 vs $25 annually, a gap of $7 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.37% for RAVI.
Holdings Overlap
QQQ and RAVI share 0 holdings out of 298 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 RAVI?
QQQ has an expense ratio of 0.18% while RAVI charges 0.25%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, QQQ or RAVI?
Over the past year QQQ returned +28.94% vs +3.75% for RAVI, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), QQQ annualized +13.12% vs +1.40% for RAVI. Past performance does not guarantee future results.
Which is riskier, QQQ or RAVI?
QQQ has been the more volatile fund at 30.6% annualized versus 1.2% for RAVI. Worst drawdown: QQQ -83.0% vs RAVI -3.8%.
Should I hold both QQQ and RAVI?
QQQ and RAVI have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RAVI?
QQQ and RAVI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 298 unique securities.
Which pays a higher dividend, QQQ or RAVI?
QQQ yields 0.41% while RAVI yields 4.37%, so RAVI currently pays the higher dividend yield.
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