ARVR vs QQQ
First Trust Indxx Metaverse 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 | ARVR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.18% | |
| AUM | $5M | $455.8B | |
| Dividend Yield | 0.65% | 0.41% | |
| Holdings | 46 | 108 | |
| YTD Return | +14.39% | +19.68% | |
| 1Y Return | +18.71% | +26.75% | |
| 3Y Return (annualized) | +23.99% | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 22.0% | 30.6% | |
| Max Drawdown | -26.3% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 19, 2022 | Mar 10, 1999 |
ARVR vs QQQ Performance
First Trust Indxx Metaverse ETF (ARVR) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ARVR returned +18.71% while QQQ returned +26.75%. Year to date, ARVR is up 14.39% versus a gain of 19.68% for QQQ.
Over three years, ARVR compounded at +23.99% per year against +26.25% for QQQ. Across the full 4-year window we track, ARVR has the edge at +17.08% annualized vs +13.15%. 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 22.0% for ARVR. 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 -26.3% for ARVR 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
ARVR charges 0.70% per year while QQQ charges 0.18%. On a $10,000 position that is $70 vs $18 annually, a gap of $52 per year that compounds over a long holding period. On income, ARVR currently yields 0.65% against 0.41% for QQQ.
Holdings Overlap
ARVR and QQQ share 15 holdings out of 130 unique holdings combined, representing a 26.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ARVR or QQQ?
ARVR has an expense ratio of 0.70% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, ARVR or QQQ?
Over the past year ARVR returned +18.71% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), ARVR annualized +17.08% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, ARVR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.0% for ARVR. Worst drawdown: ARVR -26.3% vs QQQ -83.0%.
Should I hold both ARVR and QQQ?
ARVR and QQQ have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between ARVR and QQQ?
ARVR and QQQ share 15 common holdings with a 26.2% weight overlap. Combined, they hold 130 unique securities.
Which pays a higher dividend, ARVR or QQQ?
ARVR yields 0.65% while QQQ yields 0.41%, so ARVR currently pays the higher dividend yield.
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