QQQ vs USVN

QQQ vs USVN
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Quick Verdict

USVN has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: USVNHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQUSVNWinner
Expense Ratio0.18%0.15%
AUM$496.3B$7M
Dividend Yield0.44%4.15%
Holdings1082
YTD Return+19.52%-0.73%
1Y Return+26.68%+1.28%
3Y Return (annualized)+26.64%+4.04%
5Y Return (annualized)+15.36%-
Volatility (annualized)30.6%5.5%
Max Drawdown-83.0%-8.3%
Fund FamilyInvesco (US)US Benchmark Series
CategoryEquityFixed Income
InceptionMar 10, 1999Mar 28, 2023

QQQ vs USVN Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and F/m US Treasury 7 Year Note ETF (USVN) is a ETF from US Benchmark Series. Over the past year QQQ returned +26.68% while USVN returned +1.28%. Year to date, QQQ is up 19.52% versus a loss of 0.73% for USVN.

Over three years, QQQ compounded at +26.64% per year against +4.04% for USVN. Across the full 3-year window we track, QQQ has the edge at +13.14% annualized vs +2.57%. 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 5.5% for USVN. 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 -8.3% for USVN. 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while USVN 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 4.15% for USVN.

Frequently Asked Questions

Which is cheaper, QQQ or USVN?

QQQ has an expense ratio of 0.18% while USVN charges 0.15%. USVN is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, QQQ or USVN?

Over the past year QQQ returned +26.68% vs +1.28% for USVN, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.14% vs +2.57% for USVN. Past performance does not guarantee future results.

Which is riskier, QQQ or USVN?

QQQ has been the more volatile fund at 30.6% annualized versus 5.5% for USVN. Worst drawdown: QQQ -83.0% vs USVN -8.3%.

Should I hold both QQQ and USVN?

QQQ and USVN have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, QQQ or USVN?

QQQ yields 0.44% while USVN yields 4.15%, so USVN currently pays the higher dividend yield.

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