QQQ vs USMV
Invesco QQQ Trust, Series 1 vs iShares MSCI USA Minimum Volatility Factor ETF
Which is better, QQQ or USMV?
Large Cap Growth against Large Cap Blend.
USMV has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. USMV is less concentrated, with 15.1% of the fund in its ten largest positions against 47.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | USMV |
|---|---|---|
| Expense Ratio | 0.18% | 0.15%Best |
| AUM | $498.6B | $23.3B |
| Dividend Yield | 0.42% | 1.42% |
| Holdings | 321 | 178 |
| YTD Return | +22.67%Best | +5.30% |
| 1Y Return | +24.33%Best | +4.42% |
| 3Y Return (annualized) | +29.05%Best | +12.74% |
| 5Y Return (annualized) | +17.00%Best | +7.64% |
| Volatility (annualized) | 17.4% | 11.2%Best |
| Max Drawdown | -35.1% | -33.1%Best |
| $10,000 over 5 years | $21,924Best | $14,450 |
| Top 10 Weight | 47.2% | 15.1%Best |
| Fund Family | Invesco (US) | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Oct 18, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Oct 20, 2011 to Oct 2, 2026 (15 years).
QQQ vs USMV growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 15 years both funds cover.
QQQ vs USMV Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and iShares MSCI USA Minimum Volatility Factor ETF (USMV) is an ETF from iShares by BlackRock (US). Over the past year QQQ returned +24.33% while USMV returned +4.42%. Year to date, QQQ is up 22.67% versus a gain of 5.30% for USMV.
Over three years, QQQ compounded at +29.05% per year against +12.74% for USMV; over five years the annualized figures are +17.00% and +7.64% respectively. Across the full 15-year window we track, QQQ has the edge at +19.13% annualized vs +10.11%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.4% compared with 11.2% for USMV. 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 -35.1% for QQQ and -33.1% for USMV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while USMV 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 0.42% against 1.42% for USMV.
Holdings Overlap
77.3% of QQQ's money is in holdings USMV also owns. 30.8% of USMV's money is in holdings QQQ also owns.
Most of QQQ is already inside USMV. Owning both mostly buys the same companies twice.
56 positions in common, counted across the 102 positions we hold weights for in QQQ and 175 in USMV, against full books of 321 and 178.
What only one of them owns
Our book lists 116 positions for USMV that do not appear in our book for QQQ (67.5% of the fund), and 40 for QQQ that do not appear in USMV (20.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in USMV | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.45% | 1.53% | 6.92% |
| AAPLApple, Inc | 7.80% | 0.96% | 6.84% |
| MSFTMicrosoft Corp | 5.88% | 1.56% | 4.32% |
| MUMicron Technology, Inc. | 4.85% | 0.76% | 4.09% |
| AMZNAmazon.Com Inc | 4.41% | 0.13% | 4.28% |
| AMDAdvanced Micro Devices Inc | 3.71% | 0.74% | 2.97% |
| AVGOBroadcom Inc | 2.74% | 0.94% | 1.80% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.95% | 1.41% | 0.54% |
| GOOGAlphabet Inc. C | 2.93% | 0.38% | 2.55% |
| METAMeta Platforms Inc | 3.07% | 0.09% | 2.98% |
77.3% of QQQ is already inside USMV.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or USMV?
QQQ has an expense ratio of 0.18% while USMV charges 0.15%. USMV is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, QQQ or USMV?
Over the past year QQQ returned +24.33% vs +4.42% for USMV, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), QQQ annualized +19.13% vs +10.11% for USMV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or USMV?
QQQ has been the more volatile fund at 17.4% annualized versus 11.2% for USMV. Worst drawdown: QQQ -35.1% vs USMV -33.1%.
Should I hold both QQQ and USMV?
QQQ and USMV have a monthly-return correlation of 0.69, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and USMV?
77.3% of QQQ's money is in holdings USMV also owns. 30.8% of USMV's is in holdings QQQ also owns. They hold 56 positions in common, counted across the 102 positions we hold weights for in QQQ and 175 in USMV.
Which pays a higher dividend, QQQ or USMV?
QQQ yields 0.42% while USMV yields 1.42%, so USMV currently pays the higher dividend yield.
Is USMV better than QQQ?
USMV has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. USMV is less concentrated, with 15.1% of the fund in its ten largest positions against 47.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.