INVG vs QQQ
GMO Systematic Investment Grade Credit ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. INVG offers more diversification with 127 holdings.
Side-by-Side Comparison
| Metric | INVG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $24M | $496.3B | |
| Dividend Yield | 5.30% | 0.44% | |
| Holdings | 127 | 108 | |
| YTD Return | -0.21% | +16.64% | |
| 1Y Return | +2.42% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 3.4% | 30.6% | |
| Max Drawdown | -3.1% | -83.0% | |
| Fund Family | GMO | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 3, 2025 | Mar 10, 1999 |
INVG vs QQQ Performance
GMO Systematic Investment Grade Credit ETF (INVG) is a ETF from GMO and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year INVG returned +2.42% while QQQ returned +27.27%. Year to date, INVG is down 0.21% 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 3.4% for INVG. 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 -3.1% for INVG 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
INVG 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, INVG currently yields 5.30% against 0.44% for QQQ.
Holdings Overlap
INVG and QQQ share 0 holdings out of 215 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, INVG or QQQ?
INVG 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, INVG or QQQ?
Over the past year INVG returned +2.42% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), INVG annualized +3.66% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, INVG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.4% for INVG. Worst drawdown: INVG -3.1% vs QQQ -83.0%.
Should I hold both INVG and QQQ?
INVG and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between INVG and QQQ?
INVG and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 215 unique securities.
Which pays a higher dividend, INVG or QQQ?
INVG yields 5.30% while QQQ yields 0.44%, so INVG currently pays the higher dividend yield.
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