QQQ vs RVT
Invesco QQQ Trust, Series 1 vs Royce Small-Cap Trust Inc
Quick Verdict
QQQ has a lower expense ratio. RVT delivered stronger 1-year returns. RVT offers more diversification with 473 holdings.
Side-by-Side Comparison
| Metric | QQQ | RVT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.34% | |
| AUM | $496.3B | $1.7B | |
| Dividend Yield | 0.44% | 6.98% | |
| Holdings | 108 | 473 | |
| YTD Return | +19.52% | +22.06% | |
| 1Y Return | +26.68% | +32.29% | |
| 3Y Return (annualized) | +26.64% | +20.76% | |
| 5Y Return (annualized) | +15.36% | +9.26% | |
| Volatility (annualized) | 30.6% | 22.8% | |
| Max Drawdown | -83.0% | -79.1% | |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Nov 19, 1986 |
QQQ vs RVT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Royce Small-Cap Trust Inc (RVT) is a ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +26.68% while RVT returned +32.29%. Year to date, QQQ is up 19.52% versus a gain of 22.06% for RVT.
Over three years, QQQ compounded at +26.64% per year against +20.76% for RVT; over five years the annualized figures are +15.36% and +9.26% respectively. Across the full 27-year window we track, QQQ has the edge at +13.14% annualized vs +3.06%. 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 22.8% for RVT. 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 -79.1% for RVT. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while RVT charges 1.34%. On a $10,000 position that is $18 vs $134 annually, a gap of $116 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 6.98% for RVT.
Holdings Overlap
QQQ and RVT share 0 holdings out of 572 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 RVT?
QQQ has an expense ratio of 0.18% while RVT charges 1.34%. QQQ is the cheaper option. On a $10,000 investment, that is $116 per year of difference.
Which performed better, QQQ or RVT?
Over the past year QQQ returned +26.68% vs +32.29% for RVT, so RVT leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.14% vs +3.06% for RVT. Past performance does not guarantee future results.
Which is riskier, QQQ or RVT?
QQQ has been the more volatile fund at 30.6% annualized versus 22.8% for RVT. Worst drawdown: QQQ -83.0% vs RVT -79.1%.
Should I hold both QQQ and RVT?
QQQ and RVT have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RVT?
QQQ and RVT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 572 unique securities.
Which pays a higher dividend, QQQ or RVT?
QQQ yields 0.44% while RVT yields 6.98%, so RVT currently pays the higher dividend yield.
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