AVGB vs QQQ
Avantis Credit ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. AVGB offers more diversification with 160 holdings.
Side-by-Side Comparison
| Metric | AVGB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.18% | |
| AUM | $20M | $496.3B | |
| Dividend Yield | 3.25% | 0.44% | |
| Holdings | 160 | 108 | |
| YTD Return | +0.87% | +16.64% | |
| 1Y Return | +3.09% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 2.4% | 30.6% | |
| Max Drawdown | -2.1% | -83.0% | |
| Fund Family | Avantis Investors | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 15, 2025 | Mar 10, 1999 |
AVGB vs QQQ Performance
Avantis Credit ETF (AVGB) is a ETF from Avantis Investors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AVGB returned +3.09% while QQQ returned +27.27%. Year to date, AVGB is up 0.87% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 2.4% for AVGB. 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 -2.1% for AVGB 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AVGB charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, AVGB currently yields 3.25% against 0.44% for QQQ.
Holdings Overlap
AVGB and QQQ share 0 holdings out of 194 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, AVGB or QQQ?
AVGB has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, AVGB or QQQ?
Over the past year AVGB returned +3.09% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), AVGB annualized +4.85% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, AVGB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 2.4% for AVGB. Worst drawdown: AVGB -2.1% vs QQQ -83.0%.
Should I hold both AVGB and QQQ?
AVGB and QQQ have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVGB and QQQ?
AVGB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 194 unique securities.
Which pays a higher dividend, AVGB or QQQ?
AVGB yields 3.25% while QQQ yields 0.44%, so AVGB currently pays the higher dividend yield.
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