QQQ vs RAFE
Invesco QQQ Trust, Series 1 vs PIMCO RAFI ESG US ETF
Which is better, QQQ or RAFE?
Large Cap Growth against Large Cap Value.
QQQ has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, RAFE over 1Y. RAFE is less concentrated, with 28.9% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | RAFE |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.29% |
| AUM | $483.5B | $171M |
| Dividend Yield | 0.44% | 1.43% |
| Holdings | 107 | 295 |
| YTD Return | +17.95% | +18.69%Best |
| 1Y Return | +21.77% | +24.92%Best |
| 3Y Return (annualized) | +25.63%Best | +20.35% |
| 5Y Return (annualized) | +15.24%Best | +12.38% |
| Volatility (annualized) | 20.9% | 16.6%Best |
| Max Drawdown | -35.1%Best | -35.7% |
| $10,000 over 5 years | $20,324Best | $17,924 |
| Top 10 Weight | 46.5% | 28.9%Best |
| Fund Family | Invesco (US) | PIMCO (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Mar 10, 1999 | Dec 18, 2019 |
Volatility and max drawdown are measured over the window both funds cover: Dec 20, 2019 to Sep 18, 2026 (6.7 years).
QQQ vs RAFE growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.7 years both funds cover.
QQQ vs RAFE Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and PIMCO RAFI ESG US ETF (RAFE) is an ETF from PIMCO (US). Over the past year QQQ returned +21.77% while RAFE returned +24.92%. Year to date, QQQ is up 17.95% versus a gain of 18.69% for RAFE.
Over three years, QQQ compounded at +25.63% per year against +20.35% for RAFE; over five years the annualized figures are +15.24% and +12.38% respectively. Across the full 7-year window we track, QQQ has the edge at +20.51% annualized vs +12.19%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 16.6% for RAFE. 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 -35.1% for QQQ and -35.7% for RAFE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while RAFE charges 0.29%. On a $10,000 position that is $18 vs $29 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.43% for RAFE.
Holdings Overlap
61.3% of QQQ's money is in holdings RAFE also owns. 28.9% of RAFE's money is in holdings QQQ also owns.
The two portfolios partly overlap.
49 positions in common, counted across the 102 positions we hold weights for in QQQ and 288 in RAFE, against full books of 107 and 295.
What only one of them owns
Our book lists 228 positions for RAFE that do not appear in our book for QQQ (69.6% of the fund), and 47 for QQQ that do not appear in RAFE (36.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in RAFE | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.27% | 5.29% | 1.98% |
| MSFTMicrosoft Corp | 5.76% | 4.65% | 1.11% |
| NVDANvidia Corp | 8.44% | 1.34% | 7.10% |
| MUMicron Technology, Inc. | 4.43% | 0.48% | 3.95% |
| AMDAdvanced Micro Devices Inc | 3.45% | 1.09% | 2.36% |
| AVGOBroadcom Inc | 3.16% | 0.49% | 2.67% |
| CSCOCisco Systems Inc. - Ordinary Shares | 2.10% | 1.18% | 0.92% |
| AMATApplied Materials, Inc. | 1.86% | 0.99% | 0.87% |
| LRCXLam Research Corp 3.125 06/15/2060 | 1.69% | 0.64% | 1.05% |
| COSTCostco Wholesale Corp. | 1.84% | 0.20% | 1.64% |
61.3% of QQQ is already inside RAFE.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or RAFE?
QQQ has an expense ratio of 0.18% while RAFE charges 0.29%. QQQ is the cheaper option, by $11 a year on a $10,000 investment.
Which performed better, QQQ or RAFE?
Over the past year QQQ returned +21.77% vs +24.92% for RAFE, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), QQQ annualized +20.51% vs +12.19% for RAFE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or RAFE?
QQQ has been the more volatile fund at 20.9% annualized versus 16.6% for RAFE. Worst drawdown: QQQ -35.1% vs RAFE -35.7%.
Should I hold both QQQ and RAFE?
QQQ and RAFE have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and RAFE?
61.3% of QQQ's money is in holdings RAFE also owns. 28.9% of RAFE's is in holdings QQQ also owns. They hold 49 positions in common, counted across the 102 positions we hold weights for in QQQ and 288 in RAFE.
Which pays a higher dividend, QQQ or RAFE?
QQQ yields 0.44% while RAFE yields 1.43%, so RAFE currently pays the higher dividend yield.
Is RAFE better than QQQ?
QQQ has a lower expense ratio. QQQ led over 3Y, 5Y and the full window, RAFE over 1Y. RAFE is less concentrated, with 28.9% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.