DEEP vs QQQ
Acquirers Small and Micro Deep Value ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DEEP delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | DEEP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.18% | |
| AUM | $28M | $455.8B | |
| Dividend Yield | 1.91% | 0.41% | |
| Holdings | 102 | 108 | |
| YTD Return | +23.84% | +18.20% | |
| 1Y Return | +34.05% | +27.63% | |
| 3Y Return (annualized) | +9.40% | +25.54% | |
| 5Y Return (annualized) | +6.25% | +15.12% | |
| Volatility (annualized) | 22.0% | 30.6% | |
| Max Drawdown | -56.4% | -83.0% | |
| Fund Family | Acquirers Funds, LLC | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2014 | Mar 10, 1999 |
DEEP vs QQQ Performance
Acquirers Small and Micro Deep Value ETF (DEEP) is a ETF from Acquirers Funds, LLC and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DEEP returned +34.05% while QQQ returned +27.63%. Year to date, DEEP is up 23.84% versus a gain of 18.20% for QQQ.
Over three years, DEEP compounded at +9.40% per year against +25.54% for QQQ; over five years the annualized figures are +6.25% and +15.12% respectively. Across the full 12-year window we track, QQQ has the edge at +13.11% annualized vs +5.73%. 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 22.0% for DEEP. 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 -56.4% for DEEP 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
DEEP charges 0.80% per year while QQQ charges 0.18%. On a $10,000 position that is $80 vs $18 annually, a gap of $62 per year that compounds over a long holding period. On income, DEEP currently yields 1.91% against 0.41% for QQQ.
Holdings Overlap
DEEP and QQQ share 0 holdings out of 205 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, DEEP or QQQ?
DEEP has an expense ratio of 0.80% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, DEEP or QQQ?
Over the past year DEEP returned +34.05% vs +27.63% for QQQ, so DEEP leads on 1-year performance. Over the longest common window we track (12 years), DEEP annualized +5.73% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, DEEP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.0% for DEEP. Worst drawdown: DEEP -56.4% vs QQQ -83.0%.
Should I hold both DEEP and QQQ?
DEEP 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 DEEP and QQQ?
DEEP and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 205 unique securities.
Which pays a higher dividend, DEEP or QQQ?
DEEP yields 1.91% while QQQ yields 0.41%, so DEEP currently pays the higher dividend yield.
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