QQQ vs RW
Invesco QQQ Trust, Series 1 vs Rainwater Equity ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | RW | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.95% | |
| AUM | $455.8B | $18M | |
| Dividend Yield | 0.41% | 0.10% | |
| Holdings | 108 | 33 | |
| YTD Return | +17.46% | +4.05% | |
| 1Y Return | +26.02% | +0.75% | |
| 3Y Return (annualized) | +25.51% | - | |
| 5Y Return (annualized) | +15.12% | - | |
| Volatility (annualized) | 30.6% | 12.8% | |
| Max Drawdown | -83.0% | -17.0% | |
| Fund Family | Invesco (US) | Rainwater ETFs | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 17, 2025 |
QQQ vs RW Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Rainwater Equity ETF (RW) is a ETF from Rainwater ETFs. Over the past year QQQ returned +26.02% while RW returned +0.75%. Year to date, QQQ is up 17.46% versus a gain of 4.05% for RW.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.8% for RW. 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 -17.0% for RW. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while RW charges 0.95%. On a $10,000 position that is $18 vs $95 annually, a gap of $77 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.10% for RW.
Holdings Overlap
QQQ and RW share 9 holdings out of 126 unique holdings combined, representing a 25.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or RW?
QQQ has an expense ratio of 0.18% while RW charges 0.95%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, QQQ or RW?
Over the past year QQQ returned +26.02% vs +0.75% for RW, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.08% vs +3.60% for RW. Past performance does not guarantee future results.
Which is riskier, QQQ or RW?
QQQ has been the more volatile fund at 30.6% annualized versus 12.8% for RW. Worst drawdown: QQQ -83.0% vs RW -17.0%.
Should I hold both QQQ and RW?
QQQ and RW have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RW?
QQQ and RW share 9 common holdings with a 25.0% weight overlap. Combined, they hold 126 unique securities.
Which pays a higher dividend, QQQ or RW?
QQQ yields 0.41% while RW yields 0.10%, so QQQ currently pays the higher dividend yield.
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