QQQ vs RTH
Invesco QQQ Trust, Series 1 vs VanEck Retail 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 | RTH | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $253M | |
| Dividend Yield | 0.44% | 0.92% | |
| Holdings | 108 | 27 | |
| YTD Return | +16.23% | +4.88% | |
| 1Y Return | +26.23% | +5.79% | |
| 3Y Return (annualized) | +25.75% | +15.34% | |
| 5Y Return (annualized) | +14.78% | +8.91% | |
| Volatility (annualized) | 30.6% | 15.9% | |
| Max Drawdown | -83.0% | -42.4% | |
| Fund Family | Invesco (US) | VanEck | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 20, 2011 |
QQQ vs RTH Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and VanEck Retail ETF (RTH) is a ETF from VanEck. Over the past year QQQ returned +26.23% while RTH returned +5.79%. Year to date, QQQ is up 16.23% versus a gain of 4.88% for RTH.
Over three years, QQQ compounded at +25.75% per year against +15.34% for RTH; over five years the annualized figures are +14.78% and +8.91% respectively. Across the full 25-year window we track, QQQ has the edge at +13.02% annualized vs +9.71%. 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 15.9% for RTH. 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 -42.4% for RTH. 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while RTH charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.92% for RTH.
Holdings Overlap
QQQ and RTH share 6 holdings out of 121 unique holdings combined, representing a 9.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or RTH?
QQQ has an expense ratio of 0.18% while RTH charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or RTH?
Over the past year QQQ returned +26.23% vs +5.79% for RTH, so QQQ leads on 1-year performance. Over the longest common window we track (25 years), QQQ annualized +13.02% vs +9.71% for RTH. Past performance does not guarantee future results.
Which is riskier, QQQ or RTH?
QQQ has been the more volatile fund at 30.6% annualized versus 15.9% for RTH. Worst drawdown: QQQ -83.0% vs RTH -42.4%.
Should I hold both QQQ and RTH?
QQQ and RTH have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RTH?
QQQ and RTH share 6 common holdings with a 9.9% weight overlap. Combined, they hold 121 unique securities.
Which pays a higher dividend, QQQ or RTH?
QQQ yields 0.44% while RTH yields 0.92%, so RTH currently pays the higher dividend yield.
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