ISMD vs QQQ
Inspire Small/Mid Cap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. ISMD delivered stronger 1-year returns. ISMD offers more diversification with 504 holdings.
Side-by-Side Comparison
| Metric | ISMD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.57% | 0.18% | |
| AUM | $349M | $496.3B | |
| Dividend Yield | 1.12% | 0.44% | |
| Holdings | 504 | 108 | |
| YTD Return | +27.77% | +16.23% | |
| 1Y Return | +33.84% | +26.23% | |
| 3Y Return (annualized) | +17.20% | +25.75% | |
| 5Y Return (annualized) | +10.14% | +14.78% | |
| Volatility (annualized) | 21.1% | 30.6% | |
| Max Drawdown | -45.5% | -83.0% | |
| Fund Family | Inspire ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 27, 2017 | Mar 10, 1999 |
ISMD vs QQQ Performance
Inspire Small/Mid Cap ETF (ISMD) is a ETF from Inspire ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ISMD returned +33.84% while QQQ returned +26.23%. Year to date, ISMD is up 27.77% versus a gain of 16.23% for QQQ.
Over three years, ISMD compounded at +17.20% per year against +25.75% for QQQ; over five years the annualized figures are +10.14% and +14.78% respectively. Across the full 10-year window we track, QQQ has the edge at +13.02% annualized vs +9.23%. 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 21.1% for ISMD. 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 -45.5% for ISMD 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ISMD charges 0.57% per year while QQQ charges 0.18%. On a $10,000 position that is $57 vs $18 annually, a gap of $39 per year that compounds over a long holding period. On income, ISMD currently yields 1.12% against 0.44% for QQQ.
Holdings Overlap
ISMD and QQQ share 0 holdings out of 600 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, ISMD or QQQ?
ISMD has an expense ratio of 0.57% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $39 per year of difference.
Which performed better, ISMD or QQQ?
Over the past year ISMD returned +33.84% vs +26.23% for QQQ, so ISMD leads on 1-year performance. Over the longest common window we track (10 years), ISMD annualized +9.23% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, ISMD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.1% for ISMD. Worst drawdown: ISMD -45.5% vs QQQ -83.0%.
Should I hold both ISMD and QQQ?
ISMD and QQQ have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ISMD and QQQ?
ISMD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 600 unique securities.
Which pays a higher dividend, ISMD or QQQ?
ISMD yields 1.12% while QQQ yields 0.44%, so ISMD currently pays the higher dividend yield.
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