QQQ vs ZVOL
Invesco QQQ Trust, Series 1 vs Volatility Premium Plus 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 | ZVOL | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.42% | |
| AUM | $496.3B | $16M | |
| Dividend Yield | 0.44% | 74.79% | |
| Holdings | 108 | 5 | |
| YTD Return | +16.64% | -19.85% | |
| 1Y Return | +27.27% | -11.37% | |
| 3Y Return (annualized) | +25.96% | -1.98% | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 55.4% | |
| Max Drawdown | -83.0% | -64.5% | |
| Fund Family | Invesco (US) | Volatility Shares, LLC | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Nov 22, 2024 |
QQQ vs ZVOL Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Volatility Premium Plus ETF (ZVOL) is a ETF from Volatility Shares, LLC. Over the past year QQQ returned +27.27% while ZVOL returned -11.37%. Year to date, QQQ is up 16.64% versus a loss of 19.85% for ZVOL.
Over three years, QQQ compounded at +25.96% per year against -1.98% for ZVOL. Across the full 3-year window we track, QQQ has the edge at +13.03% annualized vs +5.30%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ZVOL has been the more volatile fund, with annualized monthly volatility of 55.4% compared with 30.6% for QQQ. 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 -64.5% for ZVOL. 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while ZVOL charges 1.42%. On a $10,000 position that is $18 vs $142 annually, a gap of $124 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 74.79% for ZVOL.
Frequently Asked Questions
Which is cheaper, QQQ or ZVOL?
QQQ has an expense ratio of 0.18% while ZVOL charges 1.42%. QQQ is the cheaper option. On a $10,000 investment, that is $124 per year of difference.
Which performed better, QQQ or ZVOL?
Over the past year QQQ returned +27.27% vs -11.37% for ZVOL, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.03% vs +5.30% for ZVOL. Past performance does not guarantee future results.
Which is riskier, QQQ or ZVOL?
ZVOL has been the more volatile fund at 55.4% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs ZVOL -64.5%.
Should I hold both QQQ and ZVOL?
QQQ and ZVOL have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, QQQ or ZVOL?
QQQ yields 0.44% while ZVOL yields 74.79%, so ZVOL currently pays the higher dividend yield.
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