GKAT vs QQQ

GKAT vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricGKATQQQWinner
Expense Ratio0.59%0.18%
AUM$169M$496.3B
Dividend Yield0.65%0.44%
Holdings36108
YTD Return+12.80%+16.64%
1Y Return+19.98%+27.27%
3Y Return (annualized)-+25.96%
5Y Return (annualized)-+14.54%
Volatility (annualized)13.5%30.6%
Max Drawdown-10.4%-83.0%
Fund FamilyScharf FundsInvesco (US)
CategoryEquityEquity
InceptionOct 14, 2014Mar 10, 1999

GKAT vs QQQ Performance

Scharf Global Opportunity ETF (GKAT) is a ETF from Scharf Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GKAT returned +19.98% while QQQ returned +27.27%. Year to date, GKAT is up 12.80% 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 13.5% for GKAT. 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 -10.4% for GKAT 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GKAT charges 0.59% per year while QQQ charges 0.18%. On a $10,000 position that is $59 vs $18 annually, a gap of $41 per year that compounds over a long holding period. On income, GKAT currently yields 0.65% against 0.44% for QQQ.

Holdings Overlap

15.8%overlap

GKAT and QQQ share 6 holdings out of 128 unique holdings combined, representing a 15.8% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in GKATWeight in QQQDifference
MSFT5.53%5.76%0.23%
NVDA1.95%8.44%6.49%
AMZN5.58%4.67%0.91%
METAProProPro
MELIProProPro
ADBEProProPro
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Frequently Asked Questions

Which is cheaper, GKAT or QQQ?

GKAT has an expense ratio of 0.59% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $41 per year of difference.

Which performed better, GKAT or QQQ?

Over the past year GKAT returned +19.98% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results.

Which is riskier, GKAT or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 13.5% for GKAT. Worst drawdown: GKAT -10.4% vs QQQ -83.0%.

Should I hold both GKAT and QQQ?

GKAT and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GKAT and QQQ?

GKAT and QQQ share 6 common holdings with a 15.8% weight overlap. Combined, they hold 128 unique securities.

Which pays a higher dividend, GKAT or QQQ?

GKAT yields 0.65% while QQQ yields 0.44%, so GKAT currently pays the higher dividend yield.

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