QQQ vs RMT
Invesco QQQ Trust, Series 1 vs Royce Micro-Cap Trust Inc.
Quick Verdict
QQQ has a lower expense ratio. RMT delivered stronger 1-year returns. RMT offers more diversification with 176 holdings.
Side-by-Side Comparison
| Metric | QQQ | RMT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.35% | |
| AUM | $496.3B | $477M | |
| Dividend Yield | 0.44% | 5.36% | |
| Holdings | 108 | 176 | |
| YTD Return | +17.07% | +39.48% | |
| 1Y Return | +26.39% | +57.07% | |
| 3Y Return (annualized) | +26.08% | +26.90% | |
| 5Y Return (annualized) | +15.18% | +13.89% | |
| Volatility (annualized) | 30.6% | 23.5% | |
| Max Drawdown | -83.0% | -80.4% | |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 14, 1993 |
QQQ vs RMT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Royce Micro-Cap Trust Inc. (RMT) is a ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +26.39% while RMT returned +57.07%. Year to date, QQQ is up 17.07% versus a gain of 39.48% for RMT.
Over three years, QQQ compounded at +26.08% per year against +26.90% for RMT; over five years the annualized figures are +15.18% and +13.89% respectively. Across the full 23-year window we track, QQQ has the edge at +13.05% annualized vs +2.32%. 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 23.5% for RMT. 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 -80.4% for RMT. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while RMT charges 1.35%. On a $10,000 position that is $18 vs $135 annually, a gap of $117 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 5.36% for RMT.
Holdings Overlap
QQQ and RMT share 0 holdings out of 276 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 RMT?
QQQ has an expense ratio of 0.18% while RMT charges 1.35%. QQQ is the cheaper option. On a $10,000 investment, that is $117 per year of difference.
Which performed better, QQQ or RMT?
Over the past year QQQ returned +26.39% vs +57.07% for RMT, so RMT leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.05% vs +2.32% for RMT. Past performance does not guarantee future results.
Which is riskier, QQQ or RMT?
QQQ has been the more volatile fund at 30.6% annualized versus 23.5% for RMT. Worst drawdown: QQQ -83.0% vs RMT -80.4%.
Should I hold both QQQ and RMT?
QQQ and RMT have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RMT?
QQQ and RMT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 276 unique securities.
Which pays a higher dividend, QQQ or RMT?
QQQ yields 0.44% while RMT yields 5.36%, so RMT currently pays the higher dividend yield.
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