QQQ vs VALQ
Invesco QQQ Trust, Series 1 vs American Century US Quality Value ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VALQ offers more diversification with 224 holdings.
Side-by-Side Comparison
| Metric | QQQ | VALQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.29% | |
| AUM | $496.3B | $344M | |
| Dividend Yield | 0.44% | 1.80% | |
| Holdings | 108 | 224 | |
| YTD Return | +16.64% | +10.59% | |
| 1Y Return | +27.27% | +16.85% | |
| 3Y Return (annualized) | +25.96% | +16.02% | |
| 5Y Return (annualized) | +14.54% | +9.30% | |
| Volatility (annualized) | 30.6% | 16.3% | |
| Max Drawdown | -83.0% | -38.2% | |
| Fund Family | Invesco (US) | American Century Investments | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 11, 2018 |
QQQ vs VALQ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and American Century US Quality Value ETF (VALQ) is a ETF from American Century Investments. Over the past year QQQ returned +27.27% while VALQ returned +16.85%. Year to date, QQQ is up 16.64% versus a gain of 10.59% for VALQ.
Over three years, QQQ compounded at +25.96% per year against +16.02% for VALQ; over five years the annualized figures are +14.54% and +9.30% respectively. Across the full 9-year window we track, QQQ has the edge at +13.03% annualized vs +8.38%. 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 16.3% for VALQ. 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 -38.2% for VALQ. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VALQ charges 0.29%. On a $10,000 position that is $18 vs $29 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.80% for VALQ.
Holdings Overlap
QQQ and VALQ share 34 holdings out of 291 unique holdings combined, representing a 20.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VALQ?
QQQ has an expense ratio of 0.18% while VALQ charges 0.29%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, QQQ or VALQ?
Over the past year QQQ returned +27.27% vs +16.85% for VALQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +13.03% vs +8.38% for VALQ. Past performance does not guarantee future results.
Which is riskier, QQQ or VALQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.3% for VALQ. Worst drawdown: QQQ -83.0% vs VALQ -38.2%.
Should I hold both QQQ and VALQ?
QQQ and VALQ have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VALQ?
QQQ and VALQ share 34 common holdings with a 20.9% weight overlap. Combined, they hold 291 unique securities.
Which pays a higher dividend, QQQ or VALQ?
QQQ yields 0.44% while VALQ yields 1.80%, so VALQ currently pays the higher dividend yield.
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