QQQ vs RAYJ
Invesco QQQ Trust, Series 1 vs Rayliant SMDAM Japan Equity ETF
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 | QQQ | RAYJ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.72% | |
| AUM | $496.3B | $24M | |
| Dividend Yield | 0.44% | 4.76% | |
| Holdings | 108 | 34 | |
| YTD Return | +17.07% | +15.34% | |
| 1Y Return | +26.39% | +23.69% | |
| 3Y Return (annualized) | +26.08% | - | |
| 5Y Return (annualized) | +15.18% | - | |
| Volatility (annualized) | 30.6% | 20.6% | |
| Max Drawdown | -83.0% | -16.6% | |
| Fund Family | Invesco (US) | Rayliant Asset Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Apr 4, 2024 |
QQQ vs RAYJ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Rayliant SMDAM Japan Equity ETF (RAYJ) is a ETF from Rayliant Asset Management. Over the past year QQQ returned +26.39% while RAYJ returned +23.69%. Year to date, QQQ is up 17.07% versus a gain of 15.34% for RAYJ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 20.6% for RAYJ. 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 -16.6% for RAYJ. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while RAYJ charges 0.72%. On a $10,000 position that is $18 vs $72 annually, a gap of $54 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 4.76% for RAYJ.
Holdings Overlap
QQQ and RAYJ share 0 holdings out of 134 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 RAYJ?
QQQ has an expense ratio of 0.18% while RAYJ charges 0.72%. QQQ is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, QQQ or RAYJ?
Over the past year QQQ returned +26.39% vs +23.69% for RAYJ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.05% vs +20.92% for RAYJ. Past performance does not guarantee future results.
Which is riskier, QQQ or RAYJ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.6% for RAYJ. Worst drawdown: QQQ -83.0% vs RAYJ -16.6%.
Should I hold both QQQ and RAYJ?
QQQ and RAYJ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RAYJ?
QQQ and RAYJ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 134 unique securities.
Which pays a higher dividend, QQQ or RAYJ?
QQQ yields 0.44% while RAYJ yields 4.76%, so RAYJ currently pays the higher dividend yield.
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