OUSM vs QQQ
O Shares US Small-Cap Quality Dividend ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. OUSM offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | OUSM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.48% | 0.18% | |
| AUM | $900M | $455.8B | |
| Dividend Yield | 1.84% | 0.41% | |
| Holdings | 109 | 108 | |
| YTD Return | +15.04% | +18.31% | |
| 1Y Return | +15.24% | +25.37% | |
| 3Y Return (annualized) | +12.96% | +25.79% | |
| 5Y Return (annualized) | +8.71% | +15.20% | |
| Volatility (annualized) | 17.1% | 30.6% | |
| Max Drawdown | -40.0% | -83.0% | |
| Fund Family | ALPS Advisors | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2016 | Mar 10, 1999 |
OUSM vs QQQ Performance
O Shares US Small-Cap Quality Dividend ETF (OUSM) is a ETF from ALPS Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year OUSM returned +15.24% while QQQ returned +25.37%. Year to date, OUSM is up 15.04% versus a gain of 18.31% for QQQ.
Over three years, OUSM compounded at +12.96% per year against +25.79% for QQQ; over five years the annualized figures are +8.71% and +15.20% respectively. Across the full 10-year window we track, QQQ has the edge at +13.10% annualized vs +8.64%. 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 17.1% for OUSM. 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 -40.0% for OUSM 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
OUSM charges 0.48% per year while QQQ charges 0.18%. On a $10,000 position that is $48 vs $18 annually, a gap of $30 per year that compounds over a long holding period. On income, OUSM currently yields 1.84% against 0.41% for QQQ.
Holdings Overlap
OUSM and QQQ share 0 holdings out of 211 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, OUSM or QQQ?
OUSM has an expense ratio of 0.48% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, OUSM or QQQ?
Over the past year OUSM returned +15.24% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), OUSM annualized +8.64% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, OUSM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.1% for OUSM. Worst drawdown: OUSM -40.0% vs QQQ -83.0%.
Should I hold both OUSM and QQQ?
OUSM and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OUSM and QQQ?
OUSM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 211 unique securities.
Which pays a higher dividend, OUSM or QQQ?
OUSM yields 1.84% while QQQ yields 0.41%, so OUSM currently pays the higher dividend yield.
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