CAOS vs QQQ
Alpha Architect Tail Risk 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 103 holdings.
Side-by-Side Comparison
| Metric | CAOS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.18% | |
| AUM | $719M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 17 | 108 | |
| YTD Return | +0.76% | +18.31% | |
| 1Y Return | +1.41% | +25.37% | |
| 3Y Return (annualized) | +3.42% | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 2.0% | 30.6% | |
| Max Drawdown | -3.6% | -83.0% | |
| Fund Family | Alpha Architect | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 6, 2023 | Mar 10, 1999 |
CAOS vs QQQ Performance
Alpha Architect Tail Risk ETF (CAOS) is a ETF from Alpha Architect and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CAOS returned +1.41% while QQQ returned +25.37%. Year to date, CAOS is up 0.76% versus a gain of 18.31% for QQQ.
Over three years, CAOS compounded at +3.42% per year against +25.79% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.10% annualized vs +4.80%. 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 2.0% for CAOS. 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 -3.6% for CAOS 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CAOS charges 0.63% per year while QQQ charges 0.18%. On a $10,000 position that is $63 vs $18 annually, a gap of $45 per year that compounds over a long holding period. On income, CAOS currently yields 0.00% against 0.41% for QQQ.
Frequently Asked Questions
Which is cheaper, CAOS or QQQ?
CAOS has an expense ratio of 0.63% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, CAOS or QQQ?
Over the past year CAOS returned +1.41% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), CAOS annualized +4.80% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, CAOS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 2.0% for CAOS. Worst drawdown: CAOS -3.6% vs QQQ -83.0%.
Should I hold both CAOS and QQQ?
CAOS and QQQ have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, CAOS or QQQ?
CAOS yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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