QQQ vs SOVF

Quick Verdict

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

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQSOVFWinner
Expense Ratio0.18%0.75%
AUM$455.8B$96M
Dividend Yield0.41%0.76%
Holdings10877
YTD Return+18.20%+10.17%
1Y Return+27.63%+9.14%
3Y Return (annualized)+25.54%-
5Y Return (annualized)+15.12%-
Volatility (annualized)30.6%16.9%
Max Drawdown-83.0%-21.7%
Fund FamilyInvesco (US)Sovereign's Capital
CategoryEquityEquity
InceptionMar 10, 1999Oct 2, 2023

QQQ vs SOVF Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Sovereigns Capital Flourish Fund (SOVF) is a ETF from Sovereign's Capital. Over the past year QQQ returned +27.63% while SOVF returned +9.14%. Year to date, QQQ is up 18.20% versus a gain of 10.17% for SOVF.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 16.9% for SOVF. 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 -21.7% for SOVF. 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SOVF charges 0.75%. On a $10,000 position that is $18 vs $75 annually, a gap of $57 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.76% for SOVF.

Holdings Overlap

4.7%overlap

QQQ and SOVF share 8 holdings out of 172 unique holdings combined, representing a 4.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQWeight in SOVFDifference
CSCO2.08%1.77%0.31%
WMT2.47%0.89%1.58%
QCOM0.86%1.52%0.66%
ADPProProPro
ORLYProProPro
FASTProProPro
CPRTProProPro
FANGProProPro
See all 8 holdings QQQ shares with SOVF
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, QQQ or SOVF?

QQQ has an expense ratio of 0.18% while SOVF charges 0.75%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.

Which performed better, QQQ or SOVF?

Over the past year QQQ returned +27.63% vs +9.14% for SOVF, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.11% vs +10.51% for SOVF. Past performance does not guarantee future results.

Which is riskier, QQQ or SOVF?

QQQ has been the more volatile fund at 30.6% annualized versus 16.9% for SOVF. Worst drawdown: QQQ -83.0% vs SOVF -21.7%.

Should I hold both QQQ and SOVF?

QQQ and SOVF have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and SOVF?

QQQ and SOVF share 8 common holdings with a 4.7% weight overlap. Combined, they hold 172 unique securities.

Which pays a higher dividend, QQQ or SOVF?

QQQ yields 0.41% while SOVF yields 0.76%, so SOVF currently pays the higher dividend yield.

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