QQQ vs SMMD
Invesco QQQ Trust, Series 1 vs iShares Russell 2500 ETF
Quick Verdict
SMMD has a lower expense ratio. SMMD delivered stronger 1-year returns. SMMD offers more diversification with 520 holdings.
Side-by-Side Comparison
| Metric | QQQ | SMMD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $496.3B | $3.8B | |
| Dividend Yield | 0.44% | 1.07% | |
| Holdings | 108 | 520 | |
| YTD Return | +16.64% | +21.24% | |
| 1Y Return | +27.27% | +31.86% | |
| 3Y Return (annualized) | +25.96% | +19.22% | |
| 5Y Return (annualized) | +14.54% | +8.76% | |
| Volatility (annualized) | 30.6% | 20.4% | |
| Max Drawdown | -83.0% | -41.1% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 6, 2017 |
QQQ vs SMMD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares Russell 2500 ETF (SMMD) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +27.27% while SMMD returned +31.86%. Year to date, QQQ is up 16.64% versus a gain of 21.24% for SMMD.
Over three years, QQQ compounded at +25.96% per year against +19.22% for SMMD; over five years the annualized figures are +14.54% and +8.76% respectively. Across the full 9-year window we track, QQQ has the edge at +13.03% annualized vs +10.52%. 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 20.4% for SMMD. 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 -41.1% for SMMD. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SMMD charges 0.15%. On a $10,000 position that is $18 vs $15 annually, a gap of $3 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.07% for SMMD.
Holdings Overlap
QQQ and SMMD share 0 holdings out of 141 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 SMMD?
QQQ has an expense ratio of 0.18% while SMMD charges 0.15%. SMMD is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or SMMD?
Over the past year QQQ returned +27.27% vs +31.86% for SMMD, so SMMD leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +13.03% vs +10.52% for SMMD. Past performance does not guarantee future results.
Which is riskier, QQQ or SMMD?
QQQ has been the more volatile fund at 30.6% annualized versus 20.4% for SMMD. Worst drawdown: QQQ -83.0% vs SMMD -41.1%.
Should I hold both QQQ and SMMD?
QQQ and SMMD have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SMMD?
QQQ and SMMD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 141 unique securities.
Which pays a higher dividend, QQQ or SMMD?
QQQ yields 0.44% while SMMD yields 1.07%, so SMMD currently pays the higher dividend yield.
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