QQQ vs VCV
Invesco QQQ Trust, Series 1 vs Invesco California Value Municipal Income Trust
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VCV offers more diversification with 346 holdings.
Side-by-Side Comparison
| Metric | QQQ | VCV | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 3.57% | |
| AUM | $455.8B | $3,027.72 | |
| Dividend Yield | 0.41% | 7.48% | |
| Holdings | 108 | 346 | |
| YTD Return | +19.68% | +0.23% | |
| 1Y Return | +26.75% | +13.02% | |
| 3Y Return (annualized) | +26.25% | +10.86% | |
| 5Y Return (annualized) | +15.39% | +0.14% | |
| Volatility (annualized) | 30.6% | 14.3% | |
| Max Drawdown | -83.0% | -63.9% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Apr 30, 1993 |
QQQ vs VCV Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco California Value Municipal Income Trust (VCV) is a ETF from Invesco (US). Over the past year QQQ returned +26.75% while VCV returned +13.02%. Year to date, QQQ is up 19.68% versus a gain of 0.23% for VCV.
Over three years, QQQ compounded at +26.25% per year against +10.86% for VCV; over five years the annualized figures are +15.39% and +0.14% respectively. Across the full 27-year window we track, QQQ has the edge at +13.15% annualized vs +0.54%. 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 14.3% for VCV. 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 -63.9% for VCV. 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 0.15. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VCV charges 3.57%. On a $10,000 position that is $18 vs $357 annually, a gap of $339 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 7.48% for VCV.
Holdings Overlap
QQQ and VCV share 0 holdings out of 191 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VCV?
QQQ has an expense ratio of 0.18% while VCV charges 3.57%. QQQ is the cheaper option. On a $10,000 investment, that is $339 per year of difference.
Which performed better, QQQ or VCV?
Over the past year QQQ returned +26.75% vs +13.02% for VCV, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.15% vs +0.54% for VCV. Past performance does not guarantee future results.
Which is riskier, QQQ or VCV?
QQQ has been the more volatile fund at 30.6% annualized versus 14.3% for VCV. Worst drawdown: QQQ -83.0% vs VCV -63.9%.
Should I hold both QQQ and VCV?
QQQ and VCV have a monthly-return correlation of 0.15, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VCV?
QQQ and VCV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 191 unique securities.
Which pays a higher dividend, QQQ or VCV?
QQQ yields 0.41% while VCV yields 7.48%, so VCV currently pays the higher dividend yield.
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