KBWR vs QQQ
Invesco KBW Regional Banking 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 108 holdings.
Side-by-Side Comparison
| Metric | KBWR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $52M | $496.3B | |
| Dividend Yield | 2.65% | 0.44% | |
| Holdings | 52 | 108 | |
| YTD Return | +11.45% | +16.64% | |
| 1Y Return | +13.84% | +27.27% | |
| 3Y Return (annualized) | +8.55% | +25.96% | |
| 5Y Return (annualized) | +6.18% | +14.54% | |
| Volatility (annualized) | 27.1% | 30.6% | |
| Max Drawdown | -52.9% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2011 | Mar 10, 1999 |
KBWR vs QQQ Performance
Invesco KBW Regional Banking ETF (KBWR) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KBWR returned +13.84% while QQQ returned +27.27%. Year to date, KBWR is up 11.45% versus a gain of 16.64% for QQQ.
Over three years, KBWR compounded at +8.55% per year against +25.96% for QQQ; over five years the annualized figures are +6.18% and +14.54% respectively. Across the full 14-year window we track, QQQ has the edge at +13.03% annualized vs +10.69%. 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 27.1% for KBWR. 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 -52.9% for KBWR 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
KBWR charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, KBWR currently yields 2.65% against 0.44% for QQQ.
Holdings Overlap
KBWR and QQQ share 0 holdings out of 153 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, KBWR or QQQ?
KBWR has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, KBWR or QQQ?
Over the past year KBWR returned +13.84% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), KBWR annualized +10.69% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, KBWR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 27.1% for KBWR. Worst drawdown: KBWR -52.9% vs QQQ -83.0%.
Should I hold both KBWR and QQQ?
KBWR 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 KBWR and QQQ?
KBWR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 153 unique securities.
Which pays a higher dividend, KBWR or QQQ?
KBWR yields 2.65% while QQQ yields 0.44%, so KBWR currently pays the higher dividend yield.
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