QMOM vs QQQ
Alpha Architect US Quantitative Momentum 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 | QMOM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.18% | |
| AUM | $447M | $496.3B | |
| Dividend Yield | 0.48% | 0.44% | |
| Holdings | 52 | 108 | |
| YTD Return | +9.91% | +17.13% | |
| 1Y Return | +15.55% | +24.75% | |
| 3Y Return (annualized) | +18.52% | +24.85% | |
| 5Y Return (annualized) | +8.44% | +14.21% | |
| Volatility (annualized) | 21.9% | 30.6% | |
| Max Drawdown | -39.1% | -83.0% | |
| Fund Family | Alpha Architect | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 1, 2015 | Mar 10, 1999 |
QMOM vs QQQ Performance
Alpha Architect US Quantitative Momentum ETF (QMOM) is a ETF from Alpha Architect and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year QMOM returned +15.55% while QQQ returned +24.75%. Year to date, QMOM is up 9.91% versus a gain of 17.13% for QQQ.
Over three years, QMOM compounded at +18.52% per year against +24.85% for QQQ; over five years the annualized figures are +8.44% and +14.21% respectively. Across the full 11-year window we track, QQQ has the edge at +13.04% annualized vs +11.08%. 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 21.9% for QMOM. 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 -39.1% for QMOM 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QMOM charges 0.28% per year while QQQ charges 0.18%. On a $10,000 position that is $28 vs $18 annually, a gap of $10 per year that compounds over a long holding period. On income, QMOM currently yields 0.48% against 0.44% for QQQ.
Holdings Overlap
QMOM and QQQ share 3 holdings out of 167 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QMOM or QQQ?
QMOM has an expense ratio of 0.28% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, QMOM or QQQ?
Over the past year QMOM returned +15.55% vs +24.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), QMOM annualized +11.08% vs +13.04% for QQQ. Past performance does not guarantee future results.
Which is riskier, QMOM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.9% for QMOM. Worst drawdown: QMOM -39.1% vs QQQ -83.0%.
Should I hold both QMOM and QQQ?
QMOM and QQQ have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QMOM and QQQ?
QMOM and QQQ share 3 common holdings with a 1.9% weight overlap. Combined, they hold 167 unique securities.
Which pays a higher dividend, QMOM or QQQ?
QMOM yields 0.48% while QQQ yields 0.44%, so QMOM currently pays the higher dividend yield.
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