ARGFX vs. QQQ

Last updated Jun 3, 2026

ARGFX (Ariel Fund) and QQQ (Invesco QQQ ETF) are both funds - ARGFX is a Mid Cap Value Equities fund managed by Ariel Investments, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Over the past 10 years, ARGFX returned 9.81%/yr vs 21.94%/yr for QQQ. A 0.68 correlation means they provide meaningful diversification when combined. ARGFX charges 1.00%/yr vs 0.18%/yr for QQQ.

Performance

ARGFX vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ariel Fund (ARGFX) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARGFX achieves a 4.78% return, which is significantly lower than QQQ's 21.30% return. Over the past 10 years, ARGFX has underperformed QQQ with an annualized return of 9.81%, while QQQ has yielded a comparatively higher 21.94% annualized return.

ARGFX

• 1D: 0.21%
• 1M: 1.26%
• YTD: 4.78%
• 6M: 9.42%
• 1Y: 29.45%
• 3Y*: 13.27%
• 5Y*: 4.80%
• 10Y*: 9.81%

QQQ

• 1D: -0.26%
• 1M: 10.60%
• YTD: 21.30%
• 6M: 19.66%
• 1Y: 41.82%
• 3Y*: 28.78%
• 5Y*: 17.97%
• 10Y*: 21.94%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ARGFX vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ARGFX Ariel Fund	4.78%	14.08%	11.56%	15.78%	-18.68%	30.29%	10.05%	24.64%	-13.59%	15.99%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between ARGFX and QQQ is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Mar 11, 1999	0.68

The correlation between ARGFX and QQQ shifts across timeframes, from 0.52 (1 year) to 0.68 (all time), reflecting how their relationship changes across market environments.

Return for Risk

ARGFX vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ARGFX

ARGFX Risk / Return Rank: 28
ARGFX Sharpe Ratio Rank: 27
ARGFX Sortino Ratio Rank: 29
ARGFX Omega Ratio Rank: 24
ARGFX Calmar Ratio Rank: 35
ARGFX Martin Ratio Rank: 27

QQQ

QQQ Risk / Return Rank: 73
QQQ Sharpe Ratio Rank: 79
QQQ Sortino Ratio Rank: 75
QQQ Omega Ratio Rank: 74
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 71

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ARGFX vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ariel Fund (ARGFX) and Invesco QQQ ETF (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ARGFX	QQQ	Difference
Sharpe ratio Return per unit of total volatility	1.53	2.64	-1.11
Sortino ratio Return per unit of downside risk	2.27	3.45	-1.18
Omega ratio Gain probability vs. loss probability	1.26	1.45	-0.19
Calmar ratio Return relative to maximum drawdown	2.27	3.51	-1.24
Martin ratio Return relative to average drawdown	6.71	13.49	-6.78
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ARGFX vs. QQQ - Sharpe Ratio Comparison

The current ARGFX Sharpe Ratio is 1.53, which is lower than the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of ARGFX and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ARGFX	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.53	2.64	-1.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.22	0.81	-0.59
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.43	0.99	-0.56
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	0.41	+0.13

Drawdowns

ARGFX vs. QQQ - Drawdown Comparison

The maximum ARGFX drawdown since its inception was -71.02%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for ARGFX and QQQ.

Drawdown Indicators

	ARGFX	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-71.02%	-82.97%	+11.95%
Max Drawdown (1Y) Largest decline over 1 year	-12.36%	-11.96%	-0.40%
Max Drawdown (3Y) Largest decline over 3 years	-28.07%	-22.77%	-5.30%
Max Drawdown (5Y) Largest decline over 5 years	-33.00%	-35.12%	+2.12%
Max Drawdown (10Y) Largest decline over 10 years	-45.29%	-35.12%	-10.17%
Current Drawdown Current decline from peak	-3.65%	-0.26%	-3.39%
Average Drawdown Average peak-to-trough decline	-8.46%	-32.79%	+24.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.18%	3.11%	+1.07%

Volatility

ARGFX vs. QQQ - Volatility Comparison

Ariel Fund (ARGFX) has a higher volatility of 5.19% compared to Invesco QQQ ETF (QQQ) at 4.49%. This indicates that ARGFX's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARGFX	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.19%	4.49%	+0.70%
Volatility (6M) Calculated over the trailing 6-month period	13.30%	12.10%	+1.20%
Volatility (1Y) Calculated over the trailing 1-year period	18.94%	15.94%	+3.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.41%	22.38%	+0.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.80%	22.29%	+0.51%

ARGFX vs. QQQ - Expense Ratio Comparison

ARGFX has a 1.00% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

ARGFX vs. QQQ - Dividend Comparison

ARGFX's dividend yield for the trailing twelve months is around 11.26%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARGFX Ariel Fund	11.26%	11.80%	5.49%	5.09%	9.01%	5.56%	5.33%	5.81%	10.35%	6.30%	6.56%	16.28%
QQQ Invesco QQQ ETF	0.38%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both ARGFX and QQQ in my portfolio?

ARGFX and QQQ have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARGFX or QQQ?

ARGFX has higher volatility (5.19%) compared to QQQ (4.49%). In terms of maximum drawdown, ARGFX dropped -71.02% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.64 vs 1.53), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.