KARS vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricKARSQQQWinner
Expense Ratio0.72%0.18%
AUM$76M$455.8B
Dividend Yield0.18%0.41%
Holdings87108
YTD Return-0.50%+17.85%
1Y Return+20.89%+26.45%
3Y Return (annualized)+0.97%+26.07%
5Y Return (annualized)-6.95%+15.16%
Volatility (annualized)28.6%30.6%
Max Drawdown-64.8%-83.0%
Fund FamilyKraneSharesInvesco (US)
CategoryEquityEquity
InceptionJan 18, 2018Mar 10, 1999

KARS vs QQQ Performance

KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KARS returned +20.89% while QQQ returned +26.45%. Year to date, KARS is down 0.50% versus a gain of 17.85% for QQQ.

Over three years, KARS compounded at +0.97% per year against +26.07% for QQQ; over five years the annualized figures are -6.95% and +15.16% respectively. Across the full 9-year window we track, QQQ has the edge at +13.09% annualized vs +4.05%. 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 28.6% for KARS. 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 -64.8% for KARS 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

KARS charges 0.72% per year while QQQ charges 0.18%. On a $10,000 position that is $72 vs $18 annually, a gap of $54 per year that compounds over a long holding period. On income, KARS currently yields 0.18% against 0.41% for QQQ.

Holdings Overlap

3.2%overlap

KARS and QQQ share 1 holdings out of 181 unique holdings combined, representing a 3.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in KARSWeight in QQQDifference
TSLA4.53%3.16%1.37%

Frequently Asked Questions

Which is cheaper, KARS or QQQ?

KARS has an expense ratio of 0.72% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $54 per year of difference.

Which performed better, KARS or QQQ?

Over the past year KARS returned +20.89% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), KARS annualized +4.05% vs +13.09% for QQQ. Past performance does not guarantee future results.

Which is riskier, KARS or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 28.6% for KARS. Worst drawdown: KARS -64.8% vs QQQ -83.0%.

Should I hold both KARS and QQQ?

KARS and QQQ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between KARS and QQQ?

KARS and QQQ share 1 common holdings with a 3.2% weight overlap. Combined, they hold 181 unique securities.

Which pays a higher dividend, KARS or QQQ?

KARS yields 0.18% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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