AVSC vs QQQ
Avantis US Small Cap Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. AVSC delivered stronger 1-year returns. AVSC offers more diversification with 1,522 holdings.
Side-by-Side Comparison
| Metric | AVSC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $3.2B | $496.3B | |
| Dividend Yield | 0.93% | 0.44% | |
| Holdings | 1,522 | 108 | |
| YTD Return | +25.78% | +16.64% | |
| 1Y Return | +36.65% | +27.27% | |
| 3Y Return (annualized) | +18.79% | +25.96% | |
| 5Y Return (annualized) | +10.34% | +14.54% | |
| Volatility (annualized) | 21.3% | 30.6% | |
| Max Drawdown | -28.4% | -83.0% | |
| Fund Family | Avantis Investors | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 11, 2022 | Mar 10, 1999 |
AVSC vs QQQ Performance
Avantis US Small Cap Equity ETF (AVSC) is a ETF from Avantis Investors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AVSC returned +36.65% while QQQ returned +27.27%. Year to date, AVSC is up 25.78% versus a gain of 16.64% for QQQ.
Over three years, AVSC compounded at +18.79% per year against +25.96% for QQQ; over five years the annualized figures are +10.34% and +14.54% respectively. Across the full 10-year window we track, QQQ has the edge at +13.03% annualized vs +6.02%. 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 21.3% for AVSC. 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 -28.4% for AVSC 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AVSC charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, AVSC currently yields 0.93% against 0.44% for QQQ.
Holdings Overlap
AVSC and QQQ share 0 holdings out of 1570 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, AVSC or QQQ?
AVSC has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, AVSC or QQQ?
Over the past year AVSC returned +36.65% vs +27.27% for QQQ, so AVSC leads on 1-year performance. Over the longest common window we track (10 years), AVSC annualized +6.02% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, AVSC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.3% for AVSC. Worst drawdown: AVSC -28.4% vs QQQ -83.0%.
Should I hold both AVSC and QQQ?
AVSC and QQQ have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVSC and QQQ?
AVSC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1570 unique securities.
Which pays a higher dividend, AVSC or QQQ?
AVSC yields 0.93% while QQQ yields 0.44%, so AVSC currently pays the higher dividend yield.
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