JPSE vs QQQ
JPMorgan Diversified Return US Small Cap Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. JPSE delivered stronger 1-year returns. JPSE offers more diversification with 546 holdings.
Side-by-Side Comparison
| Metric | JPSE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $594M | $455.8B | |
| Dividend Yield | 1.58% | 0.41% | |
| Holdings | 557 | 108 | |
| YTD Return | +20.98% | +18.20% | |
| 1Y Return | +33.29% | +27.63% | |
| 3Y Return (annualized) | +14.60% | +25.54% | |
| 5Y Return (annualized) | +8.67% | +15.12% | |
| Volatility (annualized) | 19.9% | 30.6% | |
| Max Drawdown | -43.2% | -83.0% | |
| Fund Family | J.P. Morgan Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 15, 2016 | Mar 10, 1999 |
JPSE vs QQQ Performance
JPMorgan Diversified Return US Small Cap Equity ETF (JPSE) is a ETF from J.P. Morgan Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year JPSE returned +33.29% while QQQ returned +27.63%. Year to date, JPSE is up 20.98% versus a gain of 18.20% for QQQ.
Over three years, JPSE compounded at +14.60% per year against +25.54% for QQQ; over five years the annualized figures are +8.67% and +15.12% respectively. Across the full 10-year window we track, QQQ has the edge at +13.11% annualized vs +10.42%. 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 19.9% for JPSE. 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 -43.2% for JPSE 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
JPSE charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, JPSE currently yields 1.58% against 0.41% for QQQ.
Holdings Overlap
JPSE and QQQ share 0 holdings out of 649 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, JPSE or QQQ?
JPSE has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, JPSE or QQQ?
Over the past year JPSE returned +33.29% vs +27.63% for QQQ, so JPSE leads on 1-year performance. Over the longest common window we track (10 years), JPSE annualized +10.42% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, JPSE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.9% for JPSE. Worst drawdown: JPSE -43.2% vs QQQ -83.0%.
Should I hold both JPSE and QQQ?
JPSE 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 JPSE and QQQ?
JPSE and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 649 unique securities.
Which pays a higher dividend, JPSE or QQQ?
JPSE yields 1.58% while QQQ yields 0.41%, so JPSE currently pays the higher dividend yield.
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