LVOL vs QQQ
American Century Low Volatility ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. LVOL offers more diversification with 201 holdings.
Side-by-Side Comparison
| Metric | LVOL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $9M | $496.3B | |
| Dividend Yield | 1.09% | 0.44% | |
| Holdings | 201 | 108 | |
| YTD Return | -4.83% | +16.64% | |
| 1Y Return | +5.40% | +27.27% | |
| 3Y Return (annualized) | +5.97% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 14.4% | 30.6% | |
| Max Drawdown | -22.4% | -83.0% | |
| Fund Family | American Century Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 12, 2021 | Mar 10, 1999 |
LVOL vs QQQ Performance
American Century Low Volatility ETF (LVOL) is a ETF from American Century Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LVOL returned +5.40% while QQQ returned +27.27%. Year to date, LVOL is down 4.83% versus a gain of 16.64% for QQQ.
Over three years, LVOL compounded at +5.97% per year against +25.96% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +7.65%. 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 14.4% for LVOL. 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 -22.4% for LVOL 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LVOL 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, LVOL currently yields 1.09% against 0.44% for QQQ.
Frequently Asked Questions
Which is cheaper, LVOL or QQQ?
LVOL 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, LVOL or QQQ?
Over the past year LVOL returned +5.40% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), LVOL annualized +7.65% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, LVOL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.4% for LVOL. Worst drawdown: LVOL -22.4% vs QQQ -83.0%.
Should I hold both LVOL and QQQ?
LVOL and QQQ have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, LVOL or QQQ?
LVOL yields 1.09% while QQQ yields 0.44%, so LVOL currently pays the higher dividend yield.
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