OVL vs QQQ

OVL vs QQQ

Which is better, OVL or QQQ?

Large Cap Blend against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91.

Lower Fees: QQQHigher Returns: QQQ

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

MetricOVLQQQ
Expense Ratio0.79%0.18%Best
AUM$497M$506.1B
Dividend Yield9.13%0.42%
Holdings16321
YTD Return+6.54%+19.30%Best
1Y Return+10.05%+22.47%Best
3Y Return (annualized)+20.74%+26.18%Best
5Y Return (annualized)+11.49%+15.42%Best
Volatility (annualized)18.8%Best20.6%
Max Drawdown-35.5%-35.1%Best
$10,000 over 5 years$17,226$20,484Best
Fund FamilyOverlay SharesInvesco (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Growth
InceptionSep 30, 2019Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Oct 1, 2019 to Oct 14, 2026 (7 years).

OVL 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 7 years both funds cover.

OVL vs QQQ Performance

Overlay Shares Large Cap Equity ETF (OVL) is an ETF from Overlay Shares and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year OVL returned +10.05% while QQQ returned +22.47%. Year to date, OVL is up 6.54% versus a gain of 19.30% for QQQ.

Over three years, OVL compounded at +20.74% per year against +26.18% for QQQ; over five years the annualized figures are +11.49% and +15.42% respectively. Across the full 7-year window we track, QQQ has the edge at +21.88% annualized vs +15.72%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 20.6% compared with 18.8% for OVL. 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 -35.5% for OVL 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

OVL charges 0.79% per year while QQQ charges 0.18%. On a $10,000 position that is $79 vs $18 annually, a gap of $61 per year that compounds over a long holding period. On income, OVL currently yields 9.13% against 0.42% for QQQ.

Holdings Overlap

We hold position weights for 2 holdings in OVL and 101 in QQQ, totalling 100.2% 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 2 positions we hold weights for in OVL and 101 in QQQ, against full books of 16 and 321.

You are not choosing between two funds in isolation.

Whichever of OVL and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

OVLQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, OVL or QQQ?

OVL has an expense ratio of 0.79% while QQQ charges 0.18%. QQQ is the cheaper option, by $61 a year on a $10,000 investment.

Which performed better, OVL or QQQ?

Over the past year OVL returned +10.05% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), OVL annualized +15.72% vs +21.88% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, OVL or QQQ?

QQQ has been the more volatile fund at 20.6% annualized versus 18.8% for OVL. Worst drawdown: OVL -35.5% vs QQQ -35.1%.

Should I hold both OVL and QQQ?

OVL and QQQ have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

Which pays a higher dividend, OVL or QQQ?

OVL yields 9.13% while QQQ yields 0.42%, so OVL currently pays the higher dividend yield.

Is QQQ better than OVL?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. Which one suits a particular account depends on what it is for. This is information, not a recommendation.