NOVP vs QQQ

NOVP vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricNOVPQQQWinner
Expense Ratio0.50%0.18%
AUM$32M$496.3B
Dividend Yield0.00%0.44%
Holdings8108
YTD Return+9.31%+16.64%
1Y Return+14.25%+27.27%
3Y Return (annualized)-+25.96%
5Y Return (annualized)-+14.54%
Volatility (annualized)7.0%30.6%
Max Drawdown-11.8%-83.0%
Fund FamilyPGIM InvestmentsInvesco (US)
CategoryAlternativeEquity
InceptionMay 22, 2024Mar 10, 1999

NOVP vs QQQ Performance

PGIM S&P 500 Buffer 12 ETF - November (NOVP) is a ETF from PGIM Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NOVP returned +14.25% while QQQ returned +27.27%. Year to date, NOVP is up 9.31% versus a gain of 16.64% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 7.0% for NOVP. 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 -11.8% for NOVP 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

NOVP charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, NOVP currently yields 0.00% against 0.44% for QQQ.

Frequently Asked Questions

Which is cheaper, NOVP or QQQ?

NOVP has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.

Which performed better, NOVP or QQQ?

Over the past year NOVP returned +14.25% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), NOVP annualized +13.63% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, NOVP or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 7.0% for NOVP. Worst drawdown: NOVP -11.8% vs QQQ -83.0%.

Should I hold both NOVP and QQQ?

NOVP and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, NOVP or QQQ?

NOVP yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.

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