AVIG vs QQQ
Avantis Core Fixed Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
AVIG has a lower expense ratio. QQQ delivered stronger 1-year returns. AVIG offers more diversification with 866 holdings.
Side-by-Side Comparison
| Metric | AVIG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $2.0B | $496.3B | |
| Dividend Yield | 4.40% | 0.44% | |
| Holdings | 866 | 108 | |
| YTD Return | -0.25% | +16.23% | |
| 1Y Return | +2.29% | +26.23% | |
| 3Y Return (annualized) | +5.14% | +25.75% | |
| 5Y Return (annualized) | -0.25% | +14.78% | |
| Volatility (annualized) | 6.5% | 30.6% | |
| Max Drawdown | -19.7% | -83.0% | |
| Fund Family | Avantis Investors | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 13, 2020 | Mar 10, 1999 |
AVIG vs QQQ Performance
Avantis Core Fixed Income ETF (AVIG) is a ETF from Avantis Investors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AVIG returned +2.29% while QQQ returned +26.23%. Year to date, AVIG is down 0.25% versus a gain of 16.23% for QQQ.
Over three years, AVIG compounded at +5.14% per year against +25.75% for QQQ; over five years the annualized figures are -0.25% and +14.78% respectively. Across the full 6-year window we track, QQQ has the edge at +13.02% annualized vs -0.24%. 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 6.5% for AVIG. 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 -19.7% for AVIG 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AVIG charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, AVIG currently yields 4.40% against 0.44% for QQQ.
Holdings Overlap
AVIG and QQQ share 0 holdings out of 874 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, AVIG or QQQ?
AVIG has an expense ratio of 0.15% while QQQ charges 0.18%. AVIG is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, AVIG or QQQ?
Over the past year AVIG returned +2.29% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), AVIG annualized -0.24% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, AVIG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.5% for AVIG. Worst drawdown: AVIG -19.7% vs QQQ -83.0%.
Should I hold both AVIG and QQQ?
AVIG and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVIG and QQQ?
AVIG and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 874 unique securities.
Which pays a higher dividend, AVIG or QQQ?
AVIG yields 4.40% while QQQ yields 0.44%, so AVIG currently pays the higher dividend yield.
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