GVIP vs QQQ
Goldman Sachs Hedge Industry VIP 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 108 holdings.
Side-by-Side Comparison
| Metric | GVIP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.18% | |
| AUM | $584M | $496.3B | |
| Dividend Yield | 0.31% | 0.44% | |
| Holdings | 53 | 108 | |
| YTD Return | +10.60% | +16.64% | |
| 1Y Return | +24.12% | +27.27% | |
| 3Y Return (annualized) | +26.86% | +25.96% | |
| 5Y Return (annualized) | +11.45% | +14.54% | |
| Volatility (annualized) | 19.1% | 30.6% | |
| Max Drawdown | -37.1% | -83.0% | |
| Fund Family | Goldman Sachs Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2016 | Mar 10, 1999 |
GVIP vs QQQ Performance
Goldman Sachs Hedge Industry VIP ETF (GVIP) is a ETF from Goldman Sachs Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GVIP returned +24.12% while QQQ returned +27.27%. Year to date, GVIP is up 10.60% versus a gain of 16.64% for QQQ.
Over three years, GVIP compounded at +26.86% per year against +25.96% for QQQ; over five years the annualized figures are +11.45% and +14.54% respectively. Across the full 10-year window we track, GVIP has the edge at +16.76% annualized vs +13.03%. 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 19.1% for GVIP. 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 -37.1% for GVIP 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
GVIP charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, GVIP currently yields 0.31% against 0.44% for QQQ.
Holdings Overlap
GVIP and QQQ share 22 holdings out of 132 unique holdings combined, representing a 30.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GVIP or QQQ?
GVIP has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, GVIP or QQQ?
Over the past year GVIP returned +24.12% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), GVIP annualized +16.76% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, GVIP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.1% for GVIP. Worst drawdown: GVIP -37.1% vs QQQ -83.0%.
Should I hold both GVIP and QQQ?
GVIP and QQQ have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between GVIP and QQQ?
GVIP and QQQ share 22 common holdings with a 30.4% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, GVIP or QQQ?
GVIP yields 0.31% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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