QQQ vs RLY

QQQ vs RLY
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Quick Verdict

QQQ has a lower expense ratio. RLY delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: RLYMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQRLYWinner
Expense Ratio0.18%0.50%
AUM$496.3B$1.3B
Dividend Yield0.44%3.06%
Holdings10813
YTD Return+16.64%+20.23%
1Y Return+27.27%+30.82%
3Y Return (annualized)+25.96%+15.70%
5Y Return (annualized)+14.54%+12.09%
Volatility (annualized)30.6%12.6%
Max Drawdown-83.0%-46.2%
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityAllocation/Balanced
InceptionMar 10, 1999Apr 25, 2012

QQQ vs RLY Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street Multi-Asset Real Return ETF (RLY) is a ETF from State Street Investment Management. Over the past year QQQ returned +27.27% while RLY returned +30.82%. Year to date, QQQ is up 16.64% versus a gain of 20.23% for RLY.

Over three years, QQQ compounded at +25.96% per year against +15.70% for RLY; over five years the annualized figures are +14.54% and +12.09% respectively. Across the full 14-year window we track, QQQ has the edge at +13.03% annualized vs +3.62%. 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 12.6% for RLY. 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 -46.2% for RLY. 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while RLY charges 0.50%. On a $10,000 position that is $18 vs $50 annually, a gap of $32 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.06% for RLY.

Holdings Overlap

0.0%overlap

QQQ and RLY share 0 holdings out of 114 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 RLY?

QQQ has an expense ratio of 0.18% while RLY charges 0.50%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.

Which performed better, QQQ or RLY?

Over the past year QQQ returned +27.27% vs +30.82% for RLY, so RLY leads on 1-year performance. Over the longest common window we track (14 years), QQQ annualized +13.03% vs +3.62% for RLY. Past performance does not guarantee future results.

Which is riskier, QQQ or RLY?

QQQ has been the more volatile fund at 30.6% annualized versus 12.6% for RLY. Worst drawdown: QQQ -83.0% vs RLY -46.2%.

Should I hold both QQQ and RLY?

QQQ and RLY have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and RLY?

QQQ and RLY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 114 unique securities.

Which pays a higher dividend, QQQ or RLY?

QQQ yields 0.44% while RLY yields 3.06%, so RLY currently pays the higher dividend yield.

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