QQQ vs RAA
Invesco QQQ Trust, Series 1 vs SMI 3Fourteen REAL Asset Allocation ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. RAA offers more diversification with 179 holdings.
Side-by-Side Comparison
| Metric | QQQ | RAA | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.85% | |
| AUM | $496.3B | $613M | |
| Dividend Yield | 0.44% | 2.13% | |
| Holdings | 108 | 179 | |
| YTD Return | +16.19% | +10.65% | |
| 1Y Return | +25.22% | +17.74% | |
| 3Y Return (annualized) | +25.47% | +15.66% | |
| 5Y Return (annualized) | +14.34% | +15.66% | |
| Volatility (annualized) | 30.6% | 23.4% | |
| Max Drawdown | -83.0% | -53.8% | |
| Fund Family | Invesco (US) | 3FourteenSMI | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Feb 26, 2025 |
QQQ vs RAA Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and SMI 3Fourteen REAL Asset Allocation ETF (RAA) is a ETF from 3FourteenSMI. Over the past year QQQ returned +25.22% while RAA returned +17.74%. Year to date, QQQ is up 16.19% versus a gain of 10.65% for RAA.
Over three years, QQQ compounded at +25.47% per year against +15.66% for RAA; over five years the annualized figures are +14.34% and +15.66% respectively. Across the full 28-year window we track, QQQ has the edge at +13.01% annualized vs +7.28%. 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 23.4% for RAA. 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 -53.8% for RAA. 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 0.00. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while RAA charges 0.85%. On a $10,000 position that is $18 vs $85 annually, a gap of $67 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.13% for RAA.
Holdings Overlap
QQQ and RAA share 94 holdings out of 190 unique holdings combined, representing a 17.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or RAA?
QQQ has an expense ratio of 0.18% while RAA charges 0.85%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, QQQ or RAA?
Over the past year QQQ returned +25.22% vs +17.74% for RAA, so QQQ leads on 1-year performance. Over the longest common window we track (28 years), QQQ annualized +13.01% vs +7.28% for RAA. Past performance does not guarantee future results.
Which is riskier, QQQ or RAA?
QQQ has been the more volatile fund at 30.6% annualized versus 23.4% for RAA. Worst drawdown: QQQ -83.0% vs RAA -53.8%.
Should I hold both QQQ and RAA?
QQQ and RAA have a monthly-return correlation of 0.00, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RAA?
QQQ and RAA share 94 common holdings with a 17.1% weight overlap. Combined, they hold 190 unique securities.
Which pays a higher dividend, QQQ or RAA?
QQQ yields 0.44% while RAA yields 2.13%, so RAA currently pays the higher dividend yield.
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