AREA vs QQQ
Harbor AlphaEdge Next Generation REITs ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | AREA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $2M | $496.3B | |
| Dividend Yield | 0.66% | 0.44% | |
| Holdings | 86 | 108 | |
| YTD Return | +8.88% | +17.30% | |
| 1Y Return | +7.75% | +24.93% | |
| 3Y Return (annualized) | - | +26.19% | |
| 5Y Return (annualized) | - | +15.34% | |
| Volatility (annualized) | 13.0% | 30.6% | |
| Max Drawdown | -21.1% | -83.0% | |
| Fund Family | Harbor Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 3, 2024 | Mar 10, 1999 |
AREA vs QQQ Performance
Harbor AlphaEdge Next Generation REITs ETF (AREA) is a ETF from Harbor Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AREA returned +7.75% while QQQ returned +24.93%. Year to date, AREA is up 8.88% versus a gain of 17.30% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.0% for AREA. 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 -21.1% for AREA 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AREA charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, AREA currently yields 0.66% against 0.44% for QQQ.
Holdings Overlap
AREA and QQQ share 0 holdings out of 140 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, AREA or QQQ?
AREA has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, AREA or QQQ?
Over the past year AREA returned +7.75% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), AREA annualized +1.50% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, AREA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.0% for AREA. Worst drawdown: AREA -21.1% vs QQQ -83.0%.
Should I hold both AREA and QQQ?
AREA and QQQ have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AREA and QQQ?
AREA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 140 unique securities.
Which pays a higher dividend, AREA or QQQ?
AREA yields 0.66% while QQQ yields 0.44%, so AREA currently pays the higher dividend yield.
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