QQQ vs USVM

Quick Verdict

QQQ has a lower expense ratio. USVM delivered stronger 1-year returns. USVM offers more diversification with 286 holdings.

Lower Fees: QQQHigher Returns: USVMMore Diversified: USVM

Side-by-Side Comparison

MetricQQQUSVMWinner
Expense Ratio0.18%0.29%
AUM$455.8B$1.8B
Dividend Yield0.41%1.74%
Holdings108292
YTD Return+16.83%+21.04%
1Y Return+26.58%+35.26%
3Y Return (annualized)+24.70%+18.98%
5Y Return (annualized)+14.88%+10.99%
Volatility (annualized)30.6%20.3%
Max Drawdown-83.0%-44.1%
Fund FamilyInvesco (US)Victory Capital Management Inc.
CategoryEquityEquity
InceptionMar 10, 1999Oct 24, 2017

QQQ vs USVM Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and VictoryShares US Small Mid Cap Value Momentum ETF (USVM) is a ETF from Victory Capital Management Inc.. Over the past year QQQ returned +26.58% while USVM returned +35.26%. Year to date, QQQ is up 16.83% versus a gain of 21.04% for USVM.

Over three years, QQQ compounded at +24.70% per year against +18.98% for USVM; over five years the annualized figures are +14.88% and +10.99% respectively. Across the full 9-year window we track, QQQ has the edge at +13.06% annualized vs +10.56%. 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 20.3% for USVM. 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 -44.1% for USVM. 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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while USVM 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 1.74% for USVM.

Holdings Overlap

0.0%overlap

QQQ and USVM share 0 holdings out of 389 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 USVM?

QQQ has an expense ratio of 0.18% while USVM 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 USVM?

Over the past year QQQ returned +26.58% vs +35.26% for USVM, so USVM leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +13.06% vs +10.56% for USVM. Past performance does not guarantee future results.

Which is riskier, QQQ or USVM?

QQQ has been the more volatile fund at 30.6% annualized versus 20.3% for USVM. Worst drawdown: QQQ -83.0% vs USVM -44.1%.

Should I hold both QQQ and USVM?

QQQ and USVM have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and USVM?

QQQ and USVM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 389 unique securities.

Which pays a higher dividend, QQQ or USVM?

QQQ yields 0.41% while USVM yields 1.74%, so USVM currently pays the higher dividend yield.

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