KAT vs QQQ
Scharf ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | KAT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $675M | $455.8B | |
| Dividend Yield | 0.48% | 0.41% | |
| Holdings | 38 | 108 | |
| YTD Return | +6.96% | +17.46% | |
| 1Y Return | +8.03% | +26.02% | |
| 3Y Return (annualized) | - | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 12.7% | 30.6% | |
| Max Drawdown | -9.3% | -83.0% | |
| Fund Family | Scharf Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2011 | Mar 10, 1999 |
KAT vs QQQ Performance
Scharf ETF (KAT) is a ETF from Scharf Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KAT returned +8.03% while QQQ returned +26.02%. Year to date, KAT is up 6.96% versus a gain of 17.46% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.7% for KAT. 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 -9.3% for KAT 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KAT charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, KAT currently yields 0.48% against 0.41% for QQQ.
Holdings Overlap
KAT and QQQ share 4 holdings out of 132 unique holdings combined, representing a 12.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KAT or QQQ?
KAT has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, KAT or QQQ?
Over the past year KAT returned +8.03% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results.
Which is riskier, KAT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.7% for KAT. Worst drawdown: KAT -9.3% vs QQQ -83.0%.
Should I hold both KAT and QQQ?
KAT and QQQ have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KAT and QQQ?
KAT and QQQ share 4 common holdings with a 12.4% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, KAT or QQQ?
KAT yields 0.48% while QQQ yields 0.41%, so KAT currently pays the higher dividend yield.
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