AFOS vs QQQ
ARS Focused Opportunities Strategy ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. AFOS delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | AFOS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.18% | |
| AUM | $283M | $455.8B | |
| Dividend Yield | 0.22% | 0.41% | |
| Holdings | 32 | 108 | |
| YTD Return | +32.76% | +19.68% | |
| 1Y Return | +69.06% | +26.75% | |
| 3Y Return (annualized) | - | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 19.7% | 30.6% | |
| Max Drawdown | -11.8% | -83.0% | |
| Fund Family | ARS Investment | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 25, 2025 | Mar 10, 1999 |
AFOS vs QQQ Performance
ARS Focused Opportunities Strategy ETF (AFOS) is a ETF from ARS Investment and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AFOS returned +69.06% while QQQ returned +26.75%. Year to date, AFOS is up 32.76% versus a gain of 19.68% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 19.7% for AFOS. 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 -11.8% for AFOS 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AFOS charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, AFOS currently yields 0.22% against 0.41% for QQQ.
Holdings Overlap
AFOS and QQQ share 9 holdings out of 125 unique holdings combined, representing a 23.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AFOS or QQQ?
AFOS has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, AFOS or QQQ?
Over the past year AFOS returned +69.06% vs +26.75% for QQQ, so AFOS leads on 1-year performance. Over the longest common window we track (1 years), AFOS annualized +72.62% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, AFOS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.7% for AFOS. Worst drawdown: AFOS -11.8% vs QQQ -83.0%.
Should I hold both AFOS and QQQ?
AFOS and QQQ have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AFOS and QQQ?
AFOS and QQQ share 9 common holdings with a 23.0% weight overlap. Combined, they hold 125 unique securities.
Which pays a higher dividend, AFOS or QQQ?
AFOS yields 0.22% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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