QQQ vs VSMV
Invesco QQQ Trust, Series 1 vs VictoryShares US Multi-Factor Minimum Volatility ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | VSMV | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $157M | |
| Dividend Yield | 0.44% | 1.34% | |
| Holdings | 108 | 63 | |
| YTD Return | +16.64% | +10.26% | |
| 1Y Return | +27.27% | +20.50% | |
| 3Y Return (annualized) | +25.96% | +16.74% | |
| 5Y Return (annualized) | +14.54% | +10.42% | |
| Volatility (annualized) | 30.6% | 13.1% | |
| Max Drawdown | -83.0% | -31.4% | |
| Fund Family | Invesco (US) | Victory Capital Management Inc. | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 21, 2017 |
QQQ vs VSMV Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and VictoryShares US Multi-Factor Minimum Volatility ETF (VSMV) is a ETF from Victory Capital Management Inc.. Over the past year QQQ returned +27.27% while VSMV returned +20.50%. Year to date, QQQ is up 16.64% versus a gain of 10.26% for VSMV.
Over three years, QQQ compounded at +25.96% per year against +16.74% for VSMV; over five years the annualized figures are +14.54% and +10.42% respectively. Across the full 9-year window we track, QQQ has the edge at +13.03% annualized vs +11.24%. 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 13.1% 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 -83.0% for QQQ and -31.4% for VSMV. 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 0.75. 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 0.44% against 1.34% for VSMV.
Holdings Overlap
QQQ and VSMV share 11 holdings out of 152 unique holdings combined, representing a 17.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or VSMV?
Over the past year QQQ returned +27.27% vs +20.50% for VSMV, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +13.03% vs +11.24% for VSMV. Past performance does not guarantee future results.
Which is riskier, QQQ or VSMV?
QQQ has been the more volatile fund at 30.6% annualized versus 13.1% for VSMV. Worst drawdown: QQQ -83.0% vs VSMV -31.4%.
Should I hold both QQQ and VSMV?
QQQ and VSMV have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VSMV?
QQQ and VSMV share 11 common holdings with a 17.1% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, QQQ or VSMV?
QQQ yields 0.44% while VSMV yields 1.34%, so VSMV currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.