AVES vs QQQ
Avantis Emerging Markets Value ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. AVES offers more diversification with 1,887 holdings.
Side-by-Side Comparison
| Metric | AVES | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.36% | 0.18% | |
| AUM | $1.5B | $496.3B | |
| Dividend Yield | 2.60% | 0.44% | |
| Holdings | 1,887 | 108 | |
| YTD Return | +10.42% | +16.23% | |
| 1Y Return | +19.89% | +26.23% | |
| 3Y Return (annualized) | +18.98% | +25.75% | |
| 5Y Return (annualized) | +8.92% | +14.78% | |
| Volatility (annualized) | 16.4% | 30.6% | |
| Max Drawdown | -27.4% | -83.0% | |
| Fund Family | Avantis Investors | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 29, 2021 | Mar 10, 1999 |
AVES vs QQQ Performance
Avantis Emerging Markets Value ETF (AVES) is a ETF from Avantis Investors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AVES returned +19.89% while QQQ returned +26.23%. Year to date, AVES is up 10.42% versus a gain of 16.23% for QQQ.
Over three years, AVES compounded at +18.98% per year against +25.75% for QQQ; over five years the annualized figures are +8.92% and +14.78% respectively. Across the full 5-year window we track, QQQ has the edge at +13.02% annualized vs +8.92%. 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 16.4% for AVES. 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 -27.4% for AVES 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AVES charges 0.36% per year while QQQ charges 0.18%. On a $10,000 position that is $36 vs $18 annually, a gap of $18 per year that compounds over a long holding period. On income, AVES currently yields 2.60% against 0.44% for QQQ.
Holdings Overlap
AVES and QQQ share 0 holdings out of 1294 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, AVES or QQQ?
AVES has an expense ratio of 0.36% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $18 per year of difference.
Which performed better, AVES or QQQ?
Over the past year AVES returned +19.89% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), AVES annualized +8.92% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, AVES or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.4% for AVES. Worst drawdown: AVES -27.4% vs QQQ -83.0%.
Should I hold both AVES and QQQ?
AVES and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVES and QQQ?
AVES and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1294 unique securities.
Which pays a higher dividend, AVES or QQQ?
AVES yields 2.60% while QQQ yields 0.44%, so AVES currently pays the higher dividend yield.
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