ARP vs QQQ

ARP vs QQQ

Which is better, ARP or QQQ?

Multi Alternative against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window.

Lower Fees: QQQHigher Returns: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricARPQQQ
Expense Ratio1.42%0.18%Best
AUM$73M$486.1B
Dividend Yield6.05%0.44%
Holdings8107
YTD Return+13.31%+17.44%Best
1Y Return+22.49%+24.69%Best
3Y Return (annualized)+13.70%+24.76%Best
5Y Return (annualized)-+14.22%
Volatility (annualized)9.4%Best17.5%
Max Drawdown-10.1%Best-22.8%
$10,000 over 3.7 years$14,979$27,389Best
Top 10 Weight-46.5%
Fund FamilyPMV CapitalInvesco (US)
CategoryAlternativeEquity
StyleMulti AlternativeLarge Cap Growth
InceptionDec 21, 2022Mar 10, 1999

Volatility and max drawdown, and the $10,000 over 3.7 years row, are measured over the window both funds cover: Dec 22, 2022 to Sep 8, 2026 (3.7 years).

ARP vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3.7 years both funds cover.

ARP vs QQQ Performance

PMV Adaptive Risk Parity ETF (ARP) is an ETF from PMV Capital and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ARP returned +22.49% while QQQ returned +24.69%. Year to date, ARP is up 13.31% versus a gain of 17.44% for QQQ.

Over three years, ARP compounded at +13.70% per year against +24.76% for QQQ. Across the full 4-year window we track, QQQ has the edge at +31.30% annualized vs +11.54%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 9.4% 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 -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.48. They move together some of the time, and apart the rest.

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 6.05% against 0.44% for QQQ.

Holdings Overlap

We hold position weights for 6 holdings in ARP and 102 in QQQ, totalling 99.8% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 6 positions we hold weights for in ARP and 102 in QQQ, against full books of 8 and 107.

What only one of them owns

Our book lists 94 positions for QQQ that do not appear in our book for ARP (96.8% of the fund), and 6 for ARP that do not appear in QQQ (99.8%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

You are not choosing between two funds in isolation.

Whichever of ARP and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

ARPQQQ

Free for up to 10 holdings. No account needed.

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, by $124 a year on a $10,000 investment.

Which performed better, ARP or QQQ?

Over the past year ARP returned +22.49% vs +24.69% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), ARP annualized +11.54% vs +31.30% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, ARP or QQQ?

QQQ has been the more volatile fund at 17.5% annualized versus 9.4% for ARP. Worst drawdown: ARP -10.1% vs QQQ -22.8%.

Should I hold both ARP and QQQ?

ARP and QQQ have a monthly-return correlation of 0.48, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, ARP or QQQ?

ARP yields 6.05% while QQQ yields 0.44%, so ARP currently pays the higher dividend yield.

Is QQQ better than ARP?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.