QLV vs QQQ
FlexShares US Quality Low Volatility Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QLV has a lower expense ratio. QQQ delivered stronger 1-year returns. QLV offers more diversification with 122 holdings.
Side-by-Side Comparison
| Metric | QLV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.18% | |
| AUM | $168M | $496.3B | |
| Dividend Yield | 1.53% | 0.44% | |
| Holdings | 122 | 108 | |
| YTD Return | +12.31% | +16.64% | |
| 1Y Return | +15.70% | +27.27% | |
| 3Y Return (annualized) | +16.60% | +25.96% | |
| 5Y Return (annualized) | +10.00% | +14.54% | |
| Volatility (annualized) | 13.7% | 30.6% | |
| Max Drawdown | -34.0% | -83.0% | |
| Fund Family | Flexshares Trust | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 15, 2019 | Mar 10, 1999 |
QLV vs QQQ Performance
FlexShares US Quality Low Volatility Index Fund (QLV) is a ETF from Flexshares Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year QLV returned +15.70% while QQQ returned +27.27%. Year to date, QLV is up 12.31% versus a gain of 16.64% for QQQ.
Over three years, QLV compounded at +16.60% per year against +25.96% for QQQ; over five years the annualized figures are +10.00% and +14.54% respectively. Across the full 7-year window we track, QQQ has the edge at +13.03% annualized vs +11.57%. 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 13.7% for QLV. 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 -34.0% for QLV 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QLV charges 0.08% per year while QQQ charges 0.18%. On a $10,000 position that is $8 vs $18 annually, a gap of $10 per year that compounds over a long holding period. On income, QLV currently yields 1.53% against 0.44% for QQQ.
Holdings Overlap
QLV and QQQ share 21 holdings out of 198 unique holdings combined, representing a 31.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QLV or QQQ?
QLV has an expense ratio of 0.08% while QQQ charges 0.18%. QLV is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, QLV or QQQ?
Over the past year QLV returned +15.70% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), QLV annualized +11.57% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, QLV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.7% for QLV. Worst drawdown: QLV -34.0% vs QQQ -83.0%.
Should I hold both QLV and QQQ?
QLV and QQQ have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QLV and QQQ?
QLV and QQQ share 21 common holdings with a 31.0% weight overlap. Combined, they hold 198 unique securities.
Which pays a higher dividend, QLV or QQQ?
QLV yields 1.53% while QQQ yields 0.44%, so QLV currently pays the higher dividend yield.
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