QQQ vs SMLL
Invesco QQQ Trust, Series 1 vs Harbor Active Small Cap 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 | SMLL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.80% | |
| AUM | $496.3B | $15M | |
| Dividend Yield | 0.44% | 1.52% | |
| Holdings | 108 | 49 | |
| YTD Return | +19.52% | +11.88% | |
| 1Y Return | +26.68% | +3.33% | |
| 3Y Return (annualized) | +26.64% | - | |
| 5Y Return (annualized) | +15.36% | - | |
| Volatility (annualized) | 30.6% | 17.1% | |
| Max Drawdown | -83.0% | -23.6% | |
| Fund Family | Invesco (US) | Harbor Funds | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Aug 27, 2024 |
QQQ vs SMLL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Harbor Active Small Cap ETF (SMLL) is a ETF from Harbor Funds. Over the past year QQQ returned +26.68% while SMLL returned +3.33%. Year to date, QQQ is up 19.52% versus a gain of 11.88% for SMLL.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 17.1% for SMLL. 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 -23.6% for SMLL. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SMLL charges 0.80%. On a $10,000 position that is $18 vs $80 annually, a gap of $62 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.52% for SMLL.
Holdings Overlap
QQQ and SMLL share 0 holdings out of 152 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 SMLL?
QQQ has an expense ratio of 0.18% while SMLL charges 0.80%. QQQ is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, QQQ or SMLL?
Over the past year QQQ returned +26.68% vs +3.33% for SMLL, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.14% vs +7.46% for SMLL. Past performance does not guarantee future results.
Which is riskier, QQQ or SMLL?
QQQ has been the more volatile fund at 30.6% annualized versus 17.1% for SMLL. Worst drawdown: QQQ -83.0% vs SMLL -23.6%.
Should I hold both QQQ and SMLL?
QQQ and SMLL have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SMLL?
QQQ and SMLL share 0 common holdings with a 0.0% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, QQQ or SMLL?
QQQ yields 0.44% while SMLL yields 1.52%, so SMLL currently pays the higher dividend yield.
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