QQQ vs RMT
Invesco QQQ Trust, Series 1 vs Royce Micro-Cap Trust Inc.
Which is better, QQQ or RMT?
Large Cap Growth against Small Cap Blend.
QQQ has a lower expense ratio. QQQ led over 5Y and the full window, RMT over 1Y and 3Y. RMT is less concentrated, with 14.9% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | RMT |
|---|---|---|
| Expense Ratio | 0.18%Best | 1.35% |
| AUM | $483.5B | $477M |
| Dividend Yield | 0.44% | 5.27% |
| Holdings | 107 | 171 |
| YTD Return | +15.94% | +30.08%Best |
| 1Y Return | +20.44% | +37.19%Best |
| 3Y Return (annualized) | +24.86% | +24.92%Best |
| 5Y Return (annualized) | +14.26%Best | +11.42% |
| Volatility (annualized) | 18.2%Best | 23.4% |
| Max Drawdown | -53.5%Best | -80.4% |
| $10,000 over 5 years | $19,475Best | $17,172 |
| Top 10 Weight | 46.5% | 14.9%Best |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Small Cap Blend |
| Inception | Mar 10, 1999 | Dec 14, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Dec 1, 2003 to Sep 14, 2026 (22.8 years).
QQQ vs RMT growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
QQQ vs RMT Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Royce Micro-Cap Trust Inc. (RMT) is an ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +20.44% while RMT returned +37.19%. Year to date, QQQ is up 15.94% versus a gain of 30.08% for RMT.
Over three years, QQQ compounded at +24.86% per year against +24.92% for RMT; over five years the annualized figures are +14.26% and +11.42% respectively. Across the full 23-year window we track, QQQ has the edge at +14.15% annualized vs +2.00%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RMT has been the more volatile fund, with annualized monthly volatility of 23.4% compared with 18.2% for QQQ. 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 -53.5% for QQQ and -80.4% for RMT. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 5.27% for RMT.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 169 in RMT, totalling 99.9% and 102.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 102 positions we hold weights for in QQQ and 169 in RMT, against full books of 107 and 171.
What only one of them owns
Our book lists 149 positions for RMT that do not appear in our book for QQQ (92.1% of the fund), and 96 for QQQ that do not appear in RMT (97.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of QQQ and RMT you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $117 a year on a $10,000 investment.
Which performed better, QQQ or RMT?
Over the past year QQQ returned +20.44% vs +37.19% for RMT, so RMT leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +14.15% vs +2.00% for RMT. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or RMT?
RMT has been the more volatile fund at 23.4% annualized versus 18.2% for QQQ. Worst drawdown: QQQ -53.5% vs RMT -80.4%.
Should I hold both QQQ and RMT?
QQQ and RMT have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or RMT?
QQQ yields 0.44% while RMT yields 5.27%, so RMT currently pays the higher dividend yield.
Is RMT better than QQQ?
QQQ has a lower expense ratio. QQQ led over 5Y and the full window, RMT over 1Y and 3Y. RMT is less concentrated, with 14.9% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.