LVHD vs QQQ
Franklin U.S. Low Volatility High Dividend Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. LVHD offers more diversification with 117 holdings.
Side-by-Side Comparison
| Metric | LVHD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.18% | |
| AUM | $630M | $496.3B | |
| Dividend Yield | 3.20% | 0.44% | |
| Holdings | 117 | 108 | |
| YTD Return | +13.11% | +16.64% | |
| 1Y Return | +12.02% | +27.27% | |
| 3Y Return (annualized) | +12.15% | +25.96% | |
| 5Y Return (annualized) | +7.01% | +14.54% | |
| Volatility (annualized) | 13.5% | 30.6% | |
| Max Drawdown | -37.3% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 28, 2015 | Mar 10, 1999 |
LVHD vs QQQ Performance
Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LVHD returned +12.02% while QQQ returned +27.27%. Year to date, LVHD is up 13.11% versus a gain of 16.64% for QQQ.
Over three years, LVHD compounded at +12.15% per year against +25.96% for QQQ; over five years the annualized figures are +7.01% and +14.54% respectively. Across the full 11-year window we track, QQQ has the edge at +13.03% annualized vs +7.42%. 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 13.5% for LVHD. 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 -37.3% for LVHD 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LVHD charges 0.27% per year while QQQ charges 0.18%. On a $10,000 position that is $27 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, LVHD currently yields 3.20% against 0.44% for QQQ.
Holdings Overlap
LVHD and QQQ share 9 holdings out of 207 unique holdings combined, representing a 3.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LVHD or QQQ?
LVHD has an expense ratio of 0.27% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, LVHD or QQQ?
Over the past year LVHD returned +12.02% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), LVHD annualized +7.42% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, LVHD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.5% for LVHD. Worst drawdown: LVHD -37.3% vs QQQ -83.0%.
Should I hold both LVHD and QQQ?
LVHD and QQQ have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LVHD and QQQ?
LVHD and QQQ share 9 common holdings with a 3.0% weight overlap. Combined, they hold 207 unique securities.
Which pays a higher dividend, LVHD or QQQ?
LVHD yields 3.20% while QQQ yields 0.44%, so LVHD currently pays the higher dividend yield.
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