QQQ vs USA
Invesco QQQ Trust, Series 1 vs Liberty All-Star Equity Fund
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. USA offers more diversification with 139 holdings.
Side-by-Side Comparison
| Metric | QQQ | USA | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.92% | |
| AUM | $496.3B | $2.1B | |
| Dividend Yield | 0.44% | 10.15% | |
| Holdings | 108 | 139 | |
| YTD Return | +16.23% | +2.47% | |
| 1Y Return | +26.23% | +0.23% | |
| 3Y Return (annualized) | +25.75% | +9.09% | |
| 5Y Return (annualized) | +14.78% | +2.96% | |
| Volatility (annualized) | 30.6% | 19.7% | |
| Max Drawdown | -83.0% | -84.2% | |
| Fund Family | Invesco (US) | Liberty All Star Funds | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Oct 31, 1986 |
QQQ vs USA Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Liberty All-Star Equity Fund (USA) is a ETF from Liberty All Star Funds. Over the past year QQQ returned +26.23% while USA returned +0.23%. Year to date, QQQ is up 16.23% versus a gain of 2.47% for USA.
Over three years, QQQ compounded at +25.75% per year against +9.09% for USA; over five years the annualized figures are +14.78% and +2.96% respectively. Across the full 27-year window we track, QQQ has the edge at +13.02% annualized vs -0.22%. 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 19.7% for USA. 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 -84.2% for USA. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while USA charges 0.92%. On a $10,000 position that is $18 vs $92 annually, a gap of $74 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 10.15% for USA.
Holdings Overlap
QQQ and USA share 28 holdings out of 212 unique holdings combined, representing a 26.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or USA?
QQQ has an expense ratio of 0.18% while USA charges 0.92%. QQQ is the cheaper option. On a $10,000 investment, that is $74 per year of difference.
Which performed better, QQQ or USA?
Over the past year QQQ returned +26.23% vs +0.23% for USA, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.02% vs -0.22% for USA. Past performance does not guarantee future results.
Which is riskier, QQQ or USA?
QQQ has been the more volatile fund at 30.6% annualized versus 19.7% for USA. Worst drawdown: QQQ -83.0% vs USA -84.2%.
Should I hold both QQQ and USA?
QQQ and USA have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and USA?
QQQ and USA share 28 common holdings with a 26.9% weight overlap. Combined, they hold 212 unique securities.
Which pays a higher dividend, QQQ or USA?
QQQ yields 0.44% while USA yields 10.15%, so USA currently pays the higher dividend yield.
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