QQQ vs SMCF

Quick Verdict

QQQ has a lower expense ratio. SMCF delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: SMCFMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQSMCFWinner
Expense Ratio0.18%0.29%
AUM$455.8B$3M
Dividend Yield0.41%3.31%
Holdings108141
YTD Return+19.68%+22.89%
1Y Return+26.75%+28.36%
3Y Return (annualized)+26.25%-
5Y Return (annualized)+15.39%-
Volatility (annualized)30.6%17.7%
Max Drawdown-83.0%-28.0%
Fund FamilyInvesco (US)Themes ETFs
CategoryEquityEquity
InceptionMar 10, 1999Dec 13, 2023

QQQ vs SMCF Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Themes US Small Cap Cash Flow Champions ETF (SMCF) is a ETF from Themes ETFs. Over the past year QQQ returned +26.75% while SMCF returned +28.36%. Year to date, QQQ is up 19.68% versus a gain of 22.89% for SMCF.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 17.7% for SMCF. 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 -28.0% for SMCF. 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SMCF charges 0.29%. On a $10,000 position that is $18 vs $29 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.31% for SMCF.

Holdings Overlap

0.0%overlap

QQQ and SMCF share 0 holdings out of 178 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 SMCF?

QQQ has an expense ratio of 0.18% while SMCF charges 0.29%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, QQQ or SMCF?

Over the past year QQQ returned +26.75% vs +28.36% for SMCF, so SMCF leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.15% vs +20.85% for SMCF. Past performance does not guarantee future results.

Which is riskier, QQQ or SMCF?

QQQ has been the more volatile fund at 30.6% annualized versus 17.7% for SMCF. Worst drawdown: QQQ -83.0% vs SMCF -28.0%.

Should I hold both QQQ and SMCF?

QQQ and SMCF have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and SMCF?

QQQ and SMCF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 178 unique securities.

Which pays a higher dividend, QQQ or SMCF?

QQQ yields 0.41% while SMCF yields 3.31%, so SMCF currently pays the higher dividend yield.

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