ARP vs QQQ
PMV Adaptive Risk Parity 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 103 holdings.
Side-by-Side Comparison
| Metric | ARP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.42% | 0.18% | |
| AUM | $66M | $455.8B | |
| Dividend Yield | 6.15% | 0.41% | |
| Holdings | 6 | 108 | |
| YTD Return | +11.67% | +18.31% | |
| 1Y Return | +24.28% | +25.37% | |
| 3Y Return (annualized) | +13.47% | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 9.3% | 30.6% | |
| Max Drawdown | -10.1% | -83.0% | |
| Fund Family | PMV Capital | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 21, 2022 | Mar 10, 1999 |
ARP vs QQQ Performance
PMV Adaptive Risk Parity ETF (ARP) is a ETF from PMV Capital and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ARP returned +24.28% while QQQ returned +25.37%. Year to date, ARP is up 11.67% versus a gain of 18.31% for QQQ.
Over three years, ARP compounded at +13.47% per year against +25.79% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.10% annualized vs +11.34%. 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 9.3% for ARP. 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 -10.1% for ARP 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ARP charges 1.42% per year while QQQ charges 0.18%. On a $10,000 position that is $142 vs $18 annually, a gap of $124 per year that compounds over a long holding period. On income, ARP currently yields 6.15% against 0.41% for QQQ.
Holdings Overlap
ARP and QQQ share 0 holdings out of 109 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, ARP or QQQ?
ARP has an expense ratio of 1.42% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $124 per year of difference.
Which performed better, ARP or QQQ?
Over the past year ARP returned +24.28% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), ARP annualized +11.34% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, ARP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.3% for ARP. Worst drawdown: ARP -10.1% vs QQQ -83.0%.
Should I hold both ARP and QQQ?
ARP and QQQ have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARP and QQQ?
ARP and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 109 unique securities.
Which pays a higher dividend, ARP or QQQ?
ARP yields 6.15% while QQQ yields 0.41%, so ARP currently pays the higher dividend yield.
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