ARLU vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricARLUQQQWinner
Expense Ratio0.74%0.18%
AUM$54M$455.8B
Dividend Yield0.00%0.41%
Holdings4108
YTD Return+8.18%+18.31%
1Y Return+14.05%+25.37%
3Y Return (annualized)-+25.79%
5Y Return (annualized)-+15.20%
Volatility (annualized)10.4%30.6%
Max Drawdown-15.4%-83.0%
Fund FamilyAllianzIMInvesco (US)
CategoryAlternativeEquity
InceptionMar 28, 2024Mar 10, 1999

ARLU vs QQQ Performance

AllianzIM US Equity Buffer15 Uncapped Apr ETF (ARLU) is a ETF from AllianzIM and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ARLU returned +14.05% while QQQ returned +25.37%. Year to date, ARLU is up 8.18% versus a gain of 18.31% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 10.4% for ARLU. 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 -15.4% for ARLU 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 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ARLU charges 0.74% per year while QQQ charges 0.18%. On a $10,000 position that is $74 vs $18 annually, a gap of $56 per year that compounds over a long holding period. On income, ARLU currently yields 0.00% against 0.41% for QQQ.

Frequently Asked Questions

Which is cheaper, ARLU or QQQ?

ARLU has an expense ratio of 0.74% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $56 per year of difference.

Which performed better, ARLU or QQQ?

Over the past year ARLU returned +14.05% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), ARLU annualized +12.18% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, ARLU or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 10.4% for ARLU. Worst drawdown: ARLU -15.4% vs QQQ -83.0%.

Should I hold both ARLU and QQQ?

ARLU and QQQ have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, ARLU or QQQ?

ARLU yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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