OAKM vs QQQ
Oakmark US Large Cap 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 | OAKM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.18% | |
| AUM | $1.2B | $496.3B | |
| Dividend Yield | 0.63% | 0.44% | |
| Holdings | 41 | 108 | |
| YTD Return | +11.00% | +16.64% | |
| 1Y Return | +22.15% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 10.8% | 30.6% | |
| Max Drawdown | -15.2% | -83.0% | |
| Fund Family | Oakmark Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 3, 2024 | Mar 10, 1999 |
OAKM vs QQQ Performance
Oakmark US Large Cap ETF (OAKM) is a ETF from Oakmark Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year OAKM returned +22.15% while QQQ returned +27.27%. Year to date, OAKM is up 11.00% 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 10.8% for OAKM. 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 -15.2% for OAKM 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
OAKM charges 0.59% per year while QQQ charges 0.18%. On a $10,000 position that is $59 vs $18 annually, a gap of $41 per year that compounds over a long holding period. On income, OAKM currently yields 0.63% against 0.44% for QQQ.
Holdings Overlap
OAKM and QQQ share 8 holdings out of 133 unique holdings combined, representing a 5.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, OAKM or QQQ?
OAKM has an expense ratio of 0.59% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, OAKM or QQQ?
Over the past year OAKM returned +22.15% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), OAKM annualized +15.84% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, OAKM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.8% for OAKM. Worst drawdown: OAKM -15.2% vs QQQ -83.0%.
Should I hold both OAKM and QQQ?
OAKM 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 OAKM and QQQ?
OAKM and QQQ share 8 common holdings with a 5.8% weight overlap. Combined, they hold 133 unique securities.
Which pays a higher dividend, OAKM or QQQ?
OAKM yields 0.63% while QQQ yields 0.44%, so OAKM currently pays the higher dividend yield.
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