QQQ vs RFFC
Invesco QQQ Trust, Series 1 vs ALPS Active Equity Opportunity ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | RFFC | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.48% | |
| AUM | $455.8B | $30M | |
| Dividend Yield | 0.41% | 0.91% | |
| Holdings | 108 | 58 | |
| YTD Return | +18.31% | +14.64% | |
| 1Y Return | +25.37% | +25.27% | |
| 3Y Return (annualized) | +25.79% | +21.33% | |
| 5Y Return (annualized) | +15.20% | +12.21% | |
| Volatility (annualized) | 30.6% | 16.2% | |
| Max Drawdown | -83.0% | -36.5% | |
| Fund Family | Invesco (US) | ALPS Advisors | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 6, 2016 |
QQQ vs RFFC Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ALPS Active Equity Opportunity ETF (RFFC) is a ETF from ALPS Advisors. Over the past year QQQ returned +25.37% while RFFC returned +25.27%. Year to date, QQQ is up 18.31% versus a gain of 14.64% for RFFC.
Over three years, QQQ compounded at +25.79% per year against +21.33% for RFFC; over five years the annualized figures are +15.20% and +12.21% respectively. Across the full 10-year window we track, QQQ has the edge at +13.10% annualized vs +12.24%. 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 16.2% for RFFC. 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 -36.5% for RFFC. 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while RFFC charges 0.48%. On a $10,000 position that is $18 vs $48 annually, a gap of $30 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.91% for RFFC.
Holdings Overlap
QQQ and RFFC share 18 holdings out of 142 unique holdings combined, representing a 32.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or RFFC?
QQQ has an expense ratio of 0.18% while RFFC charges 0.48%. QQQ is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, QQQ or RFFC?
Over the past year QQQ returned +25.37% vs +25.27% for RFFC, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), QQQ annualized +13.10% vs +12.24% for RFFC. Past performance does not guarantee future results.
Which is riskier, QQQ or RFFC?
QQQ has been the more volatile fund at 30.6% annualized versus 16.2% for RFFC. Worst drawdown: QQQ -83.0% vs RFFC -36.5%.
Should I hold both QQQ and RFFC?
QQQ and RFFC have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RFFC?
QQQ and RFFC share 18 common holdings with a 32.0% weight overlap. Combined, they hold 142 unique securities.
Which pays a higher dividend, QQQ or RFFC?
QQQ yields 0.41% while RFFC yields 0.91%, so RFFC currently pays the higher dividend yield.
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