OPTZ vs QQQ
Optimize Strategy Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. OPTZ delivered stronger 1-year returns. OPTZ offers more diversification with 334 holdings.
Side-by-Side Comparison
| Metric | OPTZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $255M | $455.8B | |
| Dividend Yield | 0.42% | 0.41% | |
| Holdings | 336 | 108 | |
| YTD Return | +30.17% | +18.31% | |
| 1Y Return | +43.34% | +25.37% | |
| 3Y Return (annualized) | - | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 19.4% | 30.6% | |
| Max Drawdown | -25.5% | -83.0% | |
| Fund Family | Optimize Financial | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 23, 2024 | Mar 10, 1999 |
OPTZ vs QQQ Performance
Optimize Strategy Index ETF (OPTZ) is a ETF from Optimize Financial and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year OPTZ returned +43.34% while QQQ returned +25.37%. Year to date, OPTZ is up 30.17% versus a gain of 18.31% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 19.4% for OPTZ. 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 -25.5% for OPTZ 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 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
OPTZ charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, OPTZ currently yields 0.42% against 0.41% for QQQ.
Holdings Overlap
OPTZ and QQQ share 30 holdings out of 407 unique holdings combined, representing a 21.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, OPTZ or QQQ?
OPTZ has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, OPTZ or QQQ?
Over the past year OPTZ returned +43.34% vs +25.37% for QQQ, so OPTZ leads on 1-year performance. Over the longest common window we track (2 years), OPTZ annualized +31.76% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, OPTZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.4% for OPTZ. Worst drawdown: OPTZ -25.5% vs QQQ -83.0%.
Should I hold both OPTZ and QQQ?
OPTZ and QQQ have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OPTZ and QQQ?
OPTZ and QQQ share 30 common holdings with a 21.0% weight overlap. Combined, they hold 407 unique securities.
Which pays a higher dividend, OPTZ or QQQ?
OPTZ yields 0.42% while QQQ yields 0.41%, so OPTZ currently pays the higher dividend yield.
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