QQQ vs QVAL
Invesco QQQ Trust, Series 1 vs Alpha Architect US Quantitative Value ETF
Quick Verdict
QQQ has a lower expense ratio. QVAL delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | QVAL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.28% | |
| AUM | $496.3B | $615M | |
| Dividend Yield | 0.44% | 1.42% | |
| Holdings | 108 | 52 | |
| YTD Return | +16.23% | +26.33% | |
| 1Y Return | +26.23% | +40.92% | |
| 3Y Return (annualized) | +25.75% | +21.13% | |
| 5Y Return (annualized) | +14.78% | +13.93% | |
| Volatility (annualized) | 30.6% | 21.2% | |
| Max Drawdown | -83.0% | -53.3% | |
| Fund Family | Invesco (US) | Alpha Architect | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Oct 22, 2014 |
QQQ vs QVAL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Alpha Architect US Quantitative Value ETF (QVAL) is a ETF from Alpha Architect. Over the past year QQQ returned +26.23% while QVAL returned +40.92%. Year to date, QQQ is up 16.23% versus a gain of 26.33% for QVAL.
Over three years, QQQ compounded at +25.75% per year against +21.13% for QVAL; over five years the annualized figures are +14.78% and +13.93% respectively. Across the full 12-year window we track, QQQ has the edge at +13.02% annualized vs +8.90%. 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 21.2% for QVAL. 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 -83.0% for QQQ and -53.3% for QVAL. 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while QVAL charges 0.28%. On a $10,000 position that is $18 vs $28 annually, a gap of $10 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.42% for QVAL.
Holdings Overlap
QQQ and QVAL share 3 holdings out of 150 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or QVAL?
QQQ has an expense ratio of 0.18% while QVAL charges 0.28%. QQQ is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, QQQ or QVAL?
Over the past year QQQ returned +26.23% vs +40.92% for QVAL, so QVAL leads on 1-year performance. Over the longest common window we track (12 years), QQQ annualized +13.02% vs +8.90% for QVAL. Past performance does not guarantee future results.
Which is riskier, QQQ or QVAL?
QQQ has been the more volatile fund at 30.6% annualized versus 21.2% for QVAL. Worst drawdown: QQQ -83.0% vs QVAL -53.3%.
Should I hold both QQQ and QVAL?
QQQ and QVAL have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and QVAL?
QQQ and QVAL share 3 common holdings with a 1.0% weight overlap. Combined, they hold 150 unique securities.
Which pays a higher dividend, QQQ or QVAL?
QQQ yields 0.44% while QVAL yields 1.42%, so QVAL currently pays the higher dividend yield.
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