OVS vs QQQ
Overlay Shares Small Cap Equity 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 | OVS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.83% | 0.18% | |
| AUM | $39M | $496.3B | |
| Dividend Yield | 7.40% | 0.44% | |
| Holdings | 11 | 108 | |
| YTD Return | +16.55% | +16.64% | |
| 1Y Return | +24.47% | +27.27% | |
| 3Y Return (annualized) | +15.05% | +25.96% | |
| 5Y Return (annualized) | +6.25% | +14.54% | |
| Volatility (annualized) | 23.9% | 30.6% | |
| Max Drawdown | -45.1% | -83.0% | |
| Fund Family | Overlay Shares | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 30, 2019 | Mar 10, 1999 |
OVS vs QQQ Performance
Overlay Shares Small Cap Equity ETF (OVS) is a ETF from Overlay Shares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year OVS returned +24.47% while QQQ returned +27.27%. Year to date, OVS is up 16.55% versus a gain of 16.64% for QQQ.
Over three years, OVS compounded at +15.05% per year against +25.96% for QQQ; over five years the annualized figures are +6.25% and +14.54% respectively. Across the full 7-year window we track, QQQ has the edge at +13.03% annualized vs +11.21%. 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 23.9% for OVS. 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 -45.1% for OVS 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
OVS charges 0.83% per year while QQQ charges 0.18%. On a $10,000 position that is $83 vs $18 annually, a gap of $65 per year that compounds over a long holding period. On income, OVS currently yields 7.40% against 0.44% for QQQ.
Holdings Overlap
OVS and QQQ share 0 holdings out of 104 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, OVS or QQQ?
OVS has an expense ratio of 0.83% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, OVS or QQQ?
Over the past year OVS returned +24.47% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), OVS annualized +11.21% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, OVS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.9% for OVS. Worst drawdown: OVS -45.1% vs QQQ -83.0%.
Should I hold both OVS and QQQ?
OVS and QQQ have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between OVS and QQQ?
OVS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, OVS or QQQ?
OVS yields 7.40% while QQQ yields 0.44%, so OVS currently pays the higher dividend yield.
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