QQQ vs VRP
Invesco QQQ Trust, Series 1 vs Invesco Variable Rate Preferred ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VRP offers more diversification with 278 holdings.
Side-by-Side Comparison
| Metric | QQQ | VRP | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.50% | |
| AUM | $455.8B | $3.0B | |
| Dividend Yield | 0.41% | 6.23% | |
| Holdings | 108 | 343 | |
| YTD Return | +19.68% | +1.96% | |
| 1Y Return | +26.75% | +4.51% | |
| 3Y Return (annualized) | +26.25% | +8.54% | |
| 5Y Return (annualized) | +15.39% | +4.08% | |
| Volatility (annualized) | 30.6% | 7.4% | |
| Max Drawdown | -83.0% | -46.2% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Allocation/Balanced | |
| Inception | Mar 10, 1999 | May 1, 2014 |
QQQ vs VRP Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco Variable Rate Preferred ETF (VRP) is a ETF from Invesco (US). Over the past year QQQ returned +26.75% while VRP returned +4.51%. Year to date, QQQ is up 19.68% versus a gain of 1.96% for VRP.
Over three years, QQQ compounded at +26.25% per year against +8.54% for VRP; over five years the annualized figures are +15.39% and +4.08% respectively. Across the full 12-year window we track, QQQ has the edge at +13.15% annualized vs +2.29%. 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 7.4% for VRP. 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 -46.2% for VRP. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VRP charges 0.50%. On a $10,000 position that is $18 vs $50 annually, a gap of $32 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 6.23% for VRP.
Holdings Overlap
QQQ and VRP share 1 holdings out of 380 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VRP | Difference |
|---|---|---|---|
| EXC | 0.21% | 0.38% | 0.17% |
Frequently Asked Questions
Which is cheaper, QQQ or VRP?
QQQ has an expense ratio of 0.18% while VRP charges 0.50%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, QQQ or VRP?
Over the past year QQQ returned +26.75% vs +4.51% for VRP, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), QQQ annualized +13.15% vs +2.29% for VRP. Past performance does not guarantee future results.
Which is riskier, QQQ or VRP?
QQQ has been the more volatile fund at 30.6% annualized versus 7.4% for VRP. Worst drawdown: QQQ -83.0% vs VRP -46.2%.
Should I hold both QQQ and VRP?
QQQ and VRP have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VRP?
QQQ and VRP share 1 common holdings with a 0.2% weight overlap. Combined, they hold 380 unique securities.
Which pays a higher dividend, QQQ or VRP?
QQQ yields 0.41% while VRP yields 6.23%, so VRP currently pays the higher dividend yield.
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