PHYS vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricPHYSQQQWinner
Expense Ratio0.40%0.18%
AUM$15.0B$455.8B
Dividend Yield0.00%0.41%
Holdings3108
YTD Return-0.78%+18.20%
1Y Return+26.04%+27.63%
3Y Return (annualized)+30.00%+25.54%
5Y Return (annualized)+19.12%+15.12%
Volatility (annualized)17.5%30.6%
Max Drawdown-48.2%-83.0%
Fund FamilySprott Asset Management LPInvesco (US)
CategoryCommodityEquity
InceptionFeb 25, 2010Mar 10, 1999

PHYS vs QQQ Performance

Sprott Physical Gold Trust (PHYS) is a ETF from Sprott Asset Management LP and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PHYS returned +26.04% while QQQ returned +27.63%. Year to date, PHYS is down 0.78% versus a gain of 18.20% for QQQ.

Over three years, PHYS compounded at +30.00% per year against +25.54% for QQQ; over five years the annualized figures are +19.12% and +15.12% respectively. Across the full 16-year window we track, QQQ has the edge at +13.11% annualized vs +7.78%. 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 17.5% for PHYS. 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 -48.2% for PHYS 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 0.05. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PHYS charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, PHYS currently yields 0.00% against 0.41% for QQQ.

Frequently Asked Questions

Which is cheaper, PHYS or QQQ?

PHYS has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.

Which performed better, PHYS or QQQ?

Over the past year PHYS returned +26.04% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), PHYS annualized +7.78% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, PHYS or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 17.5% for PHYS. Worst drawdown: PHYS -48.2% vs QQQ -83.0%.

Should I hold both PHYS and QQQ?

PHYS and QQQ have a monthly-return correlation of 0.05, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, PHYS or QQQ?

PHYS yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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