QQQ vs SMLV

QQQ vs SMLV
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Quick Verdict

SMLV has a lower expense ratio. SMLV delivered stronger 1-year returns. SMLV offers more diversification with 401 holdings.

Lower Fees: SMLVHigher Returns: SMLVMore Diversified: SMLV

Side-by-Side Comparison

MetricQQQSMLVWinner
Expense Ratio0.18%0.12%
AUM$496.3B$263M
Dividend Yield0.44%2.21%
Holdings108401
YTD Return+17.30%+23.39%
1Y Return+24.93%+27.89%
3Y Return (annualized)+26.19%+18.78%
5Y Return (annualized)+15.34%+10.19%
Volatility (annualized)30.6%17.6%
Max Drawdown-83.0%-42.9%
Fund FamilyInvesco (US)State Street Investment Management
CategoryEquityEquity
InceptionMar 10, 1999Feb 20, 2013

QQQ vs SMLV Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR US Small Cap Low Volatility Index ETF (SMLV) is a ETF from State Street Investment Management. Over the past year QQQ returned +24.93% while SMLV returned +27.89%. Year to date, QQQ is up 17.30% versus a gain of 23.39% for SMLV.

Over three years, QQQ compounded at +26.19% per year against +18.78% for SMLV; over five years the annualized figures are +15.34% and +10.19% respectively. Across the full 14-year window we track, QQQ has the edge at +13.06% annualized vs +8.75%. 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 17.6% for SMLV. 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 -42.9% for SMLV. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SMLV charges 0.12%. On a $10,000 position that is $18 vs $12 annually, a gap of $6 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.21% for SMLV.

Holdings Overlap

0.0%overlap

QQQ and SMLV share 0 holdings out of 501 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 SMLV?

QQQ has an expense ratio of 0.18% while SMLV charges 0.12%. SMLV is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, QQQ or SMLV?

Over the past year QQQ returned +24.93% vs +27.89% for SMLV, so SMLV leads on 1-year performance. Over the longest common window we track (14 years), QQQ annualized +13.06% vs +8.75% for SMLV. Past performance does not guarantee future results.

Which is riskier, QQQ or SMLV?

QQQ has been the more volatile fund at 30.6% annualized versus 17.6% for SMLV. Worst drawdown: QQQ -83.0% vs SMLV -42.9%.

Should I hold both QQQ and SMLV?

QQQ and SMLV have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and SMLV?

QQQ and SMLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 501 unique securities.

Which pays a higher dividend, QQQ or SMLV?

QQQ yields 0.44% while SMLV yields 2.21%, so SMLV currently pays the higher dividend yield.

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