AAVM vs QQQ
Alpha Architect Global Factor Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. AAVM delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | AAVM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $27M | $496.3B | |
| Dividend Yield | 1.81% | 0.44% | |
| Holdings | 6 | 108 | |
| YTD Return | +16.38% | +16.64% | |
| 1Y Return | +28.76% | +27.27% | |
| 3Y Return (annualized) | +19.10% | +25.96% | |
| 5Y Return (annualized) | +7.31% | +14.54% | |
| Volatility (annualized) | 12.9% | 30.6% | |
| Max Drawdown | -34.7% | -83.0% | |
| Fund Family | Alpha Architect | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 2, 2017 | Mar 10, 1999 |
AAVM vs QQQ Performance
Alpha Architect Global Factor Equity ETF (AAVM) is a ETF from Alpha Architect and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AAVM returned +28.76% while QQQ returned +27.27%. Year to date, AAVM is up 16.38% versus a gain of 16.64% for QQQ.
Over three years, AAVM compounded at +19.10% per year against +25.96% for QQQ; over five years the annualized figures are +7.31% and +14.54% respectively. Across the full 9-year window we track, QQQ has the edge at +13.03% annualized vs +5.33%. 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 12.9% for AAVM. 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 -34.7% for AAVM and -83.0% for QQQ. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AAVM charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, AAVM currently yields 1.81% against 0.44% for QQQ.
Holdings Overlap
AAVM and QQQ share 0 holdings out of 107 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, AAVM or QQQ?
AAVM has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, AAVM or QQQ?
Over the past year AAVM returned +28.76% vs +27.27% for QQQ, so AAVM leads on 1-year performance. Over the longest common window we track (9 years), AAVM annualized +5.33% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, AAVM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.9% for AAVM. Worst drawdown: AAVM -34.7% vs QQQ -83.0%.
Should I hold both AAVM and QQQ?
AAVM and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AAVM and QQQ?
AAVM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, AAVM or QQQ?
AAVM yields 1.81% while QQQ yields 0.44%, so AAVM currently pays the higher dividend yield.
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