QQQ vs VSMV
Invesco QQQ Trust, Series 1 vs VictoryShares US Multi-Factor Minimum Volatility ETF
Which is better, QQQ or VSMV?
Large Cap Growth against Large Cap Value.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. VSMV is less concentrated, with 46.4% of the fund in its ten largest positions against 47.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | VSMV |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.35% |
| AUM | $498.6B | $155M |
| Dividend Yield | 0.42% | 1.32% |
| Holdings | 321 | 63 |
| YTD Return | +22.67%Best | +9.24% |
| 1Y Return | +24.33%Best | +13.08% |
| 3Y Return (annualized) | +29.05%Best | +17.36% |
| 5Y Return (annualized) | +17.00%Best | +11.38% |
| Volatility (annualized) | 19.6% | 13.0%Best |
| Max Drawdown | -35.1% | -31.4%Best |
| $10,000 over 5 years | $21,924Best | $17,141 |
| Top 10 Weight | 47.2% | 46.4%Best |
| Fund Family | Invesco (US) | Victory Capital Management Inc. |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Mar 10, 1999 | Jun 21, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Jun 22, 2017 to Oct 2, 2026 (9.3 years).
QQQ vs VSMV growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.3 years both funds cover.
QQQ vs VSMV Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and VictoryShares US Multi-Factor Minimum Volatility ETF (VSMV) is an ETF from Victory Capital Management Inc.. Over the past year QQQ returned +24.33% while VSMV returned +13.08%. Year to date, QQQ is up 22.67% versus a gain of 9.24% for VSMV.
Over three years, QQQ compounded at +29.05% per year against +17.36% for VSMV; over five years the annualized figures are +17.00% and +11.38% respectively. Across the full 9-year window we track, QQQ has the edge at +20.19% annualized vs +10.98%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.6% compared with 13.0% for VSMV. 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 -35.1% for QQQ and -31.4% for VSMV. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while VSMV charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 1.32% for VSMV.
Holdings Overlap
17.7% of QQQ's money is in holdings VSMV also owns. 38.0% of VSMV's money is in holdings QQQ also owns.
The two portfolios partly overlap.
11 positions in common, counted across the 102 positions we hold weights for in QQQ and 61 in VSMV, against full books of 321 and 63.
What only one of them owns
Our book lists 49 positions for VSMV that do not appear in our book for QQQ (61.8% of the fund), and 85 for QQQ that do not appear in VSMV (80.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in VSMV | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.80% | 11.72% | 3.92% |
| LRCXLrcx Uw Equity | 1.64% | 4.53% | 2.89% |
| WMTWalmart, Inc. | 2.31% | 3.26% | 0.95% |
| QCOMQualcomm Inc. | 0.85% | 4.27% | 3.42% |
| KLACKla Corp | 1.04% | 3.84% | 2.80% |
| COSTCostco Wholesale Corp. | 1.77% | 2.65% | 0.88% |
| ADBEAdobe Systems | 0.45% | 3.09% | 2.64% |
| TMUST-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558 | 0.87% | 1.86% | 0.99% |
| INTUIntuit, Inc. | 0.39% | 2.24% | 1.85% |
| CMCSAComcast Corp-class A Cmcsa | 0.40% | 0.21% | 0.19% |
38.0% of VSMV is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or VSMV?
QQQ has an expense ratio of 0.18% while VSMV charges 0.35%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.
Which performed better, QQQ or VSMV?
Over the past year QQQ returned +24.33% vs +13.08% for VSMV, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +20.19% vs +10.98% for VSMV. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or VSMV?
QQQ has been the more volatile fund at 19.6% annualized versus 13.0% for VSMV. Worst drawdown: QQQ -35.1% vs VSMV -31.4%.
Should I hold both QQQ and VSMV?
QQQ and VSMV have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and VSMV?
38.0% of VSMV's money is in holdings QQQ also owns. 38.0% of VSMV's is in holdings QQQ also owns. They hold 11 positions in common, counted across the 102 positions we hold weights for in QQQ and 61 in VSMV.
Which pays a higher dividend, QQQ or VSMV?
QQQ yields 0.42% while VSMV yields 1.32%, so VSMV currently pays the higher dividend yield.
Is VSMV better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. VSMV is less concentrated, with 46.4% of the fund in its ten largest positions against 47.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.