QQQ vs REIT
Invesco QQQ Trust, Series 1 vs ALPS Active REIT 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 | REIT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.68% | |
| AUM | $496.3B | $58M | |
| Dividend Yield | 0.44% | 2.66% | |
| Holdings | 108 | 30 | |
| YTD Return | +16.64% | +18.57% | |
| 1Y Return | +27.27% | +20.56% | |
| 3Y Return (annualized) | +25.96% | +12.51% | |
| 5Y Return (annualized) | +14.54% | +4.75% | |
| Volatility (annualized) | 30.6% | 18.0% | |
| Max Drawdown | -83.0% | -29.3% | |
| Fund Family | Invesco (US) | ALPS Advisors | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Feb 24, 2021 |
QQQ vs REIT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ALPS Active REIT ETF (REIT) is a ETF from ALPS Advisors. Over the past year QQQ returned +27.27% while REIT returned +20.56%. Year to date, QQQ is up 16.64% versus a gain of 18.57% for REIT.
Over three years, QQQ compounded at +25.96% per year against +12.51% for REIT; over five years the annualized figures are +14.54% and +4.75% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs +7.84%. 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 18.0% for REIT. 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 -29.3% for REIT. 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while REIT charges 0.68%. On a $10,000 position that is $18 vs $68 annually, a gap of $50 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.66% for REIT.
Holdings Overlap
QQQ and REIT share 0 holdings out of 131 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 REIT?
QQQ has an expense ratio of 0.18% while REIT charges 0.68%. QQQ is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, QQQ or REIT?
Over the past year QQQ returned +27.27% vs +20.56% for REIT, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), QQQ annualized +13.03% vs +7.84% for REIT. Past performance does not guarantee future results.
Which is riskier, QQQ or REIT?
QQQ has been the more volatile fund at 30.6% annualized versus 18.0% for REIT. Worst drawdown: QQQ -83.0% vs REIT -29.3%.
Should I hold both QQQ and REIT?
QQQ and REIT have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and REIT?
QQQ and REIT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 131 unique securities.
Which pays a higher dividend, QQQ or REIT?
QQQ yields 0.44% while REIT yields 2.66%, so REIT currently pays the higher dividend yield.
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