QQQ vs VLUE
Invesco QQQ Trust, Series 1 vs iShares MSCI USA Value Factor ETF
Quick Verdict
VLUE has a lower expense ratio. VLUE delivered stronger 1-year returns. VLUE offers more diversification with 156 holdings.
Side-by-Side Comparison
| Metric | QQQ | VLUE | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $496.3B | $9.9B | |
| Dividend Yield | 0.44% | 1.45% | |
| Holdings | 108 | 156 | |
| YTD Return | +16.64% | +45.96% | |
| 1Y Return | +27.27% | +76.18% | |
| 3Y Return (annualized) | +25.96% | +32.94% | |
| 5Y Return (annualized) | +14.54% | +17.19% | |
| Volatility (annualized) | 30.6% | 18.9% | |
| Max Drawdown | -83.0% | -39.5% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Apr 16, 2013 |
QQQ vs VLUE Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares MSCI USA Value Factor ETF (VLUE) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +27.27% while VLUE returned +76.18%. Year to date, QQQ is up 16.64% versus a gain of 45.96% for VLUE.
Over three years, QQQ compounded at +25.96% per year against +32.94% for VLUE; over five years the annualized figures are +14.54% and +17.19% respectively. Across the full 13-year window we track, QQQ has the edge at +13.03% annualized vs +12.32%. 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 18.9% for VLUE. 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 -39.5% for VLUE. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VLUE 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 1.45% for VLUE.
Holdings Overlap
QQQ and VLUE share 15 holdings out of 239 unique holdings combined, representing a 10.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or VLUE?
QQQ has an expense ratio of 0.18% while VLUE charges 0.15%. VLUE is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or VLUE?
Over the past year QQQ returned +27.27% vs +76.18% for VLUE, so VLUE leads on 1-year performance. Over the longest common window we track (13 years), QQQ annualized +13.03% vs +12.32% for VLUE. Past performance does not guarantee future results.
Which is riskier, QQQ or VLUE?
QQQ has been the more volatile fund at 30.6% annualized versus 18.9% for VLUE. Worst drawdown: QQQ -83.0% vs VLUE -39.5%.
Should I hold both QQQ and VLUE?
QQQ and VLUE have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VLUE?
QQQ and VLUE share 15 common holdings with a 10.3% weight overlap. Combined, they hold 239 unique securities.
Which pays a higher dividend, QQQ or VLUE?
QQQ yields 0.44% while VLUE yields 1.45%, so VLUE currently pays the higher dividend yield.
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