IPO vs QQQ
Renaissance IPO ETF vs Invesco QQQ Trust, Series 1
Which is better, IPO or QQQ?
Mid Cap Growth against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 55.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IPO | QQQ |
|---|---|---|
| Expense Ratio | 0.60% | 0.18%Best |
| AUM | $146M | $486.1B |
| Dividend Yield | 0.45% | 0.44% |
| Holdings | 53 | 107 |
| YTD Return | +14.22% | +17.33%Best |
| 1Y Return | +10.59% | +26.50%Best |
| 3Y Return (annualized) | +17.86% | +24.58%Best |
| 5Y Return (annualized) | -4.68% | +14.15%Best |
| Volatility (annualized) | 26.1% | 18.0%Best |
| Max Drawdown | -68.8% | -35.1%Best |
| $10,000 over 5 years | $7,869 | $19,381Best |
| Top 10 Weight | 55.4% | 46.5%Best |
| Fund Family | Renaissance Capital | Invesco (US) |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Growth |
| Inception | Oct 16, 2013 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Oct 16, 2013 to Sep 3, 2026 (12.9 years).
IPO vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 12.9 years both funds cover.
IPO vs QQQ Performance
Renaissance IPO ETF (IPO) is an ETF from Renaissance Capital and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year IPO returned +10.59% while QQQ returned +26.50%. Year to date, IPO is up 14.22% versus a gain of 17.33% for QQQ.
Over three years, IPO compounded at +17.86% per year against +24.58% for QQQ; over five years the annualized figures are -4.68% and +14.15% respectively. Across the full 13-year window we track, QQQ has the edge at +18.82% annualized vs +7.92%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IPO has been the more volatile fund, with annualized monthly volatility of 26.1% compared with 18.0% for QQQ. 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 -68.8% for IPO and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IPO charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, IPO currently yields 0.45% against 0.44% for QQQ.
Holdings Overlap
24.0% of IPO's money is in holdings QQQ also owns. 0.9% of QQQ's money is in holdings IPO also owns.
IPO and QQQ share little of their money.
3 positions in common, counted across the 52 positions we hold weights for in IPO and 102 in QQQ, against full books of 53 and 107.
What only one of them owns
Our book lists 93 positions for QQQ that do not appear in our book for IPO (96.6% of the fund), and 42 for IPO that do not appear in QQQ (64.6%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
24.0% of IPO is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IPO or QQQ?
IPO has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option, by $42 a year on a $10,000 investment.
Which performed better, IPO or QQQ?
Over the past year IPO returned +10.59% vs +26.50% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), IPO annualized +7.92% vs +18.82% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IPO or QQQ?
IPO has been the more volatile fund at 26.1% annualized versus 18.0% for QQQ. Worst drawdown: IPO -68.8% vs QQQ -35.1%.
Should I hold both IPO and QQQ?
IPO and QQQ have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IPO and QQQ?
24.0% of IPO's money is in holdings QQQ also owns. 0.9% of QQQ's is in holdings IPO also owns. They hold 3 positions in common, counted across the 52 positions we hold weights for in IPO and 102 in QQQ.
Which pays a higher dividend, IPO or QQQ?
IPO yields 0.45% while QQQ yields 0.44%, so IPO currently pays the higher dividend yield.
Is QQQ better than IPO?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 55.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.