QQQ vs RAYE

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQRAYEWinner
Expense Ratio0.18%0.88%
AUM$455.8B$37M
Dividend Yield0.41%2.93%
Holdings108119
YTD Return+17.85%+22.31%
1Y Return+26.45%+16.38%
3Y Return (annualized)+26.07%+15.15%
5Y Return (annualized)+15.16%-
Volatility (annualized)30.6%15.7%
Max Drawdown-83.0%-26.9%
Fund FamilyInvesco (US)The Advisors Inner Circle Fund
CategoryEquityEquity
InceptionMar 10, 1999Dec 15, 2021

QQQ vs RAYE Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Rayliant Quantamental Emerging Market ex-China Equity ETF (RAYE) is a ETF from The Advisors Inner Circle Fund. Over the past year QQQ returned +26.45% while RAYE returned +16.38%. Year to date, QQQ is up 17.85% versus a gain of 22.31% for RAYE.

Over three years, QQQ compounded at +26.07% per year against +15.15% for RAYE. Across the full 4-year window we track, QQQ has the edge at +13.09% annualized vs +5.35%. 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 15.7% for RAYE. 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 -26.9% for RAYE. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while RAYE charges 0.88%. On a $10,000 position that is $18 vs $88 annually, a gap of $70 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.93% for RAYE.

Holdings Overlap

0.0%overlap

QQQ and RAYE share 0 holdings out of 201 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, QQQ or RAYE?

QQQ has an expense ratio of 0.18% while RAYE charges 0.88%. QQQ is the cheaper option. On a $10,000 investment, that is $70 per year of difference.

Which performed better, QQQ or RAYE?

Over the past year QQQ returned +26.45% vs +16.38% for RAYE, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.09% vs +5.35% for RAYE. Past performance does not guarantee future results.

Which is riskier, QQQ or RAYE?

QQQ has been the more volatile fund at 30.6% annualized versus 15.7% for RAYE. Worst drawdown: QQQ -83.0% vs RAYE -26.9%.

Should I hold both QQQ and RAYE?

QQQ and RAYE have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and RAYE?

QQQ and RAYE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 201 unique securities.

Which pays a higher dividend, QQQ or RAYE?

QQQ yields 0.41% while RAYE yields 2.93%, so RAYE currently pays the higher dividend yield.

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