QQQ vs XSVM
Invesco QQQ Trust, Series 1 vs Invesco S&P SmallCap Value with Momentum ETF
Quick Verdict
QQQ has a lower expense ratio. XSVM delivered stronger 1-year returns. XSVM offers more diversification with 122 holdings.
Side-by-Side Comparison
| Metric | QQQ | XSVM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.37% | |
| AUM | $496.3B | $671M | |
| Dividend Yield | 0.44% | 1.74% | |
| Holdings | 108 | 122 | |
| YTD Return | +16.64% | +22.80% | |
| 1Y Return | +27.27% | +30.12% | |
| 3Y Return (annualized) | +25.96% | +15.48% | |
| 5Y Return (annualized) | +14.54% | +9.04% | |
| Volatility (annualized) | 30.6% | 21.8% | |
| Max Drawdown | -83.0% | -64.1% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Mar 3, 2005 |
QQQ vs XSVM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco S&P SmallCap Value with Momentum ETF (XSVM) is a ETF from Invesco (US). Over the past year QQQ returned +27.27% while XSVM returned +30.12%. Year to date, QQQ is up 16.64% versus a gain of 22.80% for XSVM.
Over three years, QQQ compounded at +25.96% per year against +15.48% for XSVM; over five years the annualized figures are +14.54% and +9.04% respectively. Across the full 22-year window we track, QQQ has the edge at +13.03% annualized vs +7.88%. 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 21.8% for XSVM. 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 -64.1% for XSVM. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XSVM charges 0.37%. On a $10,000 position that is $18 vs $37 annually, a gap of $19 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.74% for XSVM.
Holdings Overlap
QQQ and XSVM share 0 holdings out of 222 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 XSVM?
QQQ has an expense ratio of 0.18% while XSVM charges 0.37%. QQQ is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, QQQ or XSVM?
Over the past year QQQ returned +27.27% vs +30.12% for XSVM, so XSVM leads on 1-year performance. Over the longest common window we track (22 years), QQQ annualized +13.03% vs +7.88% for XSVM. Past performance does not guarantee future results.
Which is riskier, QQQ or XSVM?
QQQ has been the more volatile fund at 30.6% annualized versus 21.8% for XSVM. Worst drawdown: QQQ -83.0% vs XSVM -64.1%.
Should I hold both QQQ and XSVM?
QQQ and XSVM have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XSVM?
QQQ and XSVM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 222 unique securities.
Which pays a higher dividend, QQQ or XSVM?
QQQ yields 0.44% while XSVM yields 1.74%, so XSVM currently pays the higher dividend yield.
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