JOF vs QQQ
Japan Smaller Capitalization Fund Inc vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. JOF delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | JOF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.47% | 0.18% | |
| AUM | $240M | $496.3B | |
| Dividend Yield | 15.92% | 0.44% | |
| Holdings | 91 | 108 | |
| YTD Return | +21.27% | +17.13% | |
| 1Y Return | +30.27% | +24.75% | |
| 3Y Return (annualized) | +27.97% | +24.85% | |
| 5Y Return (annualized) | +12.70% | +14.21% | |
| Volatility (annualized) | 26.5% | 30.6% | |
| Max Drawdown | -70.0% | -83.0% | |
| Fund Family | Nomura Asset Management Co Ltd | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 21, 1990 | Mar 10, 1999 |
JOF vs QQQ Performance
Japan Smaller Capitalization Fund Inc (JOF) is a ETF from Nomura Asset Management Co Ltd and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year JOF returned +30.27% while QQQ returned +24.75%. Year to date, JOF is up 21.27% versus a gain of 17.13% for QQQ.
Over three years, JOF compounded at +27.97% per year against +24.85% for QQQ; over five years the annualized figures are +12.70% and +14.21% respectively. Across the full 28-year window we track, QQQ has the edge at +13.04% annualized vs +1.93%. 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 26.5% for JOF. 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 -70.0% for JOF 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
JOF charges 1.47% per year while QQQ charges 0.18%. On a $10,000 position that is $147 vs $18 annually, a gap of $129 per year that compounds over a long holding period. On income, JOF currently yields 15.92% against 0.44% for QQQ.
Holdings Overlap
JOF and QQQ share 0 holdings out of 193 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, JOF or QQQ?
JOF has an expense ratio of 1.47% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $129 per year of difference.
Which performed better, JOF or QQQ?
Over the past year JOF returned +30.27% vs +24.75% for QQQ, so JOF leads on 1-year performance. Over the longest common window we track (28 years), JOF annualized +1.93% vs +13.04% for QQQ. Past performance does not guarantee future results.
Which is riskier, JOF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 26.5% for JOF. Worst drawdown: JOF -70.0% vs QQQ -83.0%.
Should I hold both JOF and QQQ?
JOF and QQQ have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between JOF and QQQ?
JOF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 193 unique securities.
Which pays a higher dividend, JOF or QQQ?
JOF yields 15.92% while QQQ yields 0.44%, so JOF currently pays the higher dividend yield.
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