GARP vs QQQ
iShares MSCI USA Quality GARP ETF vs Invesco QQQ Trust, Series 1
Which is better, GARP or QQQ?
Nearly the same fund. GARP costs less.
GARP has a lower expense ratio. GARP led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. GARP is less concentrated, with 42.2% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | GARP | QQQ |
|---|---|---|
| Expense Ratio | 0.15%Best | 0.18% |
| AUM | $3.0B | $483.5B |
| Dividend Yield | 0.26% | 0.44% |
| Holdings | 135 | 107 |
| YTD Return | +20.04%Best | +15.86% |
| 1Y Return | +29.09%Best | +22.63% |
| 3Y Return (annualized) | +30.75%Best | +24.15% |
| 5Y Return (annualized) | +17.51%Best | +14.16% |
| Volatility (annualized) | 20.4%Best | 21.1% |
| Max Drawdown | -31.3%Best | -35.1% |
| $10,000 over 5 years | $22,407Best | $19,390 |
| Top 10 Weight | 42.2%Best | 46.5% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Jan 14, 2020 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jan 16, 2020 to Sep 10, 2026 (6.7 years).
GARP vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.7 years both funds cover.
GARP vs QQQ Performance
iShares MSCI USA Quality GARP ETF (GARP) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year GARP returned +29.09% while QQQ returned +22.63%. Year to date, GARP is up 20.04% versus a gain of 15.86% for QQQ.
Over three years, GARP compounded at +30.75% per year against +24.15% for QQQ; over five years the annualized figures are +17.51% and +14.16% respectively. Across the full 7-year window we track, GARP has the edge at +20.13% annualized vs +19.63%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 21.1% compared with 20.4% for GARP. 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 -31.3% for GARP and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
GARP charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, GARP currently yields 0.26% against 0.44% for QQQ.
Holdings Overlap
63.8% of GARP's money is in holdings QQQ also owns. 63.3% of QQQ's money is in holdings GARP also owns.
The two portfolios partly overlap.
40 positions in common, counted across the 132 positions we hold weights for in GARP and 102 in QQQ, against full books of 135 and 107.
What only one of them owns
Our book lists 55 positions for QQQ that do not appear in our book for GARP (33.7% of the fund), and 86 for GARP that do not appear in QQQ (35.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in GARP | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 4.53% | 8.44% | 3.91% |
| AAPLApple, Inc | 4.74% | 7.27% | 2.53% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.33% | 5.76% | 0.43% |
| MUMicron Technology, Inc. | 4.67% | 4.43% | 0.24% |
| AVGOBroadcom Inc | 4.36% | 3.16% | 1.20% |
| AMZNAmazon.Com Inc | 1.70% | 4.67% | 2.97% |
| METAMeta Platforms, Inc. | 3.48% | 2.78% | 0.70% |
| GOOGLAlphabet A Usd 0.001 | 2.90% | 3.36% | 0.46% |
| AMDAdvanced Micro Devices Inc. | 1.82% | 3.45% | 1.63% |
| KLACKla Corp. | 4.10% | 1.11% | 2.99% |
63.8% of GARP is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, GARP or QQQ?
GARP has an expense ratio of 0.15% while QQQ charges 0.18%. GARP is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, GARP or QQQ?
Over the past year GARP returned +29.09% vs +22.63% for QQQ, so GARP leads on 1-year performance. Over the longest common window we track (7 years), GARP annualized +20.13% vs +19.63% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, GARP or QQQ?
QQQ has been the more volatile fund at 21.1% annualized versus 20.4% for GARP. Worst drawdown: GARP -31.3% vs QQQ -35.1%.
Should I hold both GARP and QQQ?
GARP and QQQ have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between GARP and QQQ?
63.8% of GARP's money is in holdings QQQ also owns. 63.3% of QQQ's is in holdings GARP also owns. They hold 40 positions in common, counted across the 132 positions we hold weights for in GARP and 102 in QQQ.
Which pays a higher dividend, GARP or QQQ?
GARP yields 0.26% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than GARP?
GARP has a lower expense ratio. GARP led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.97. GARP is less concentrated, with 42.2% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.