HSMV vs QQQ
First Trust Horizon Managed Volatility Small/Mid ETF vs Invesco QQQ Trust, Series 1
Which is better, HSMV or QQQ?
Small Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. HSMV is less concentrated, with 16.1% of the fund in its ten largest positions against 46.7%.
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 | HSMV | QQQ |
|---|---|---|
| Expense Ratio | 0.80% | 0.18%Best |
| AUM | $5M | $506.1B |
| Dividend Yield | 4.62% | 0.42% |
| Holdings | 302 | 321 |
| YTD Return | +3.28% | +19.30%Best |
| 1Y Return | +4.21% | +22.47%Best |
| 3Y Return (annualized) | +9.14% | +26.18%Best |
| 5Y Return (annualized) | +3.51% | +15.42%Best |
| Volatility (annualized) | 14.7%Best | 20.2% |
| Max Drawdown | -19.2%Best | -35.1% |
| $10,000 over 5 years | $11,883 | $20,484Best |
| Top 10 Weight | 16.1%Best | 46.7% |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Growth |
| Inception | Apr 6, 2020 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Apr 7, 2020 to Oct 14, 2026 (6.5 years).
HSMV vs QQQ 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 6.5 years both funds cover.
HSMV vs QQQ Performance
First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) is an ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year HSMV returned +4.21% while QQQ returned +22.47%. Year to date, HSMV is up 3.28% versus a gain of 19.30% for QQQ.
Over three years, HSMV compounded at +9.14% per year against +26.18% for QQQ; over five years the annualized figures are +3.51% and +15.42% respectively. Across the full 7-year window we track, QQQ has the edge at +22.91% annualized vs +10.07%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.2% compared with 14.7% for HSMV. 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 -19.2% for HSMV and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.54. They move together some of the time, and apart the rest.
Fees and Cost Over Time
HSMV charges 0.80% per year while QQQ charges 0.18%. On a $10,000 position that is $80 vs $18 annually, a gap of $62 per year that compounds over a long holding period. On income, HSMV currently yields 4.62% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 150 holdings in HSMV and 101 in QQQ, totalling 99.6% and 99.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 150 positions we hold weights for in HSMV and 101 in QQQ, against full books of 302 and 321.
What only one of them owns
Our book lists 93 positions for QQQ that do not appear in our book for HSMV (96.3% of the fund), and 148 for HSMV that do not appear in QQQ (98.4%).
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.
You are not choosing between two funds in isolation.
Whichever of HSMV and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HSMV or QQQ?
HSMV has an expense ratio of 0.80% while QQQ charges 0.18%. QQQ is the cheaper option, by $62 a year on a $10,000 investment.
Which performed better, HSMV or QQQ?
Over the past year HSMV returned +4.21% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), HSMV annualized +10.07% vs +22.91% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HSMV or QQQ?
QQQ has been the more volatile fund at 20.2% annualized versus 14.7% for HSMV. Worst drawdown: HSMV -19.2% vs QQQ -35.1%.
Should I hold both HSMV and QQQ?
HSMV and QQQ have a monthly-return correlation of 0.54, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, HSMV or QQQ?
HSMV yields 4.62% while QQQ yields 0.42%, so HSMV currently pays the higher dividend yield.
Is QQQ better than HSMV?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. HSMV is less concentrated, with 16.1% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.