GFAFX vs. QQQ

Last updated Jun 3, 2026

GFAFX (American Funds Growth Fund of America Class F-1) and QQQ (Invesco QQQ ETF) are both funds - GFAFX is a Large Cap Growth Equities fund actively managed by American Funds, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. GFAFX is actively managed, while QQQ is passively managed. Over the past 10 years, GFAFX returned 15.95%/yr vs 21.97%/yr for QQQ. Their correlation of 0.91 suggests significant overlap in exposure. GFAFX charges 0.65%/yr vs 0.18%/yr for QQQ.

Performance

GFAFX vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Growth Fund of America Class F-1 (GFAFX) 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, GFAFX achieves a 10.42% return, which is significantly lower than QQQ's 21.62% return. Over the past 10 years, GFAFX has underperformed QQQ with an annualized return of 15.95%, while QQQ has yielded a comparatively higher 21.97% annualized return.

GFAFX

• 1D: 0.38%
• 1M: 7.35%
• YTD: 10.42%
• 6M: 10.68%
• 1Y: 27.06%
• 3Y*: 25.23%
• 5Y*: 12.29%
• 10Y*: 15.95%

QQQ

• 1D: 0.46%
• 1M: 10.68%
• YTD: 21.62%
• 6M: 20.27%
• 1Y: 43.30%
• 3Y*: 28.89%
• 5Y*: 18.43%
• 10Y*: 21.97%

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

GFAFX vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GFAFX American Funds Growth Fund of America Class F-1	10.42%	19.66%	27.96%	37.15%	-30.78%	19.24%	37.78%	28.10%	-3.23%	26.07%
QQQ Invesco QQQ ETF	21.62%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between GFAFX and QQQ is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since Jan 3, 2002	0.91

The correlation between GFAFX and QQQ has been stable across timeframes, ranging from 0.91 to 0.95 - a consistent structural relationship.

Return for Risk

GFAFX vs. QQQ — Risk / Return Rank

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

GFAFX

GFAFX Risk / Return Rank: 36
GFAFX Sharpe Ratio Rank: 40
GFAFX Sortino Ratio Rank: 37
GFAFX Omega Ratio Rank: 39
GFAFX Calmar Ratio Rank: 29
GFAFX Martin Ratio Rank: 35

QQQ

QQQ Risk / Return Rank: 77
QQQ Sharpe Ratio Rank: 83
QQQ Sortino Ratio Rank: 78
QQQ Omega Ratio Rank: 77
QQQ Calmar Ratio Rank: 73
QQQ Martin Ratio Rank: 74

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.

GFAFX vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Growth Fund of America Class F-1 (GFAFX) 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.

	GFAFX	QQQ	Difference
Sharpe ratio Return per unit of total volatility	1.85	2.73	-0.88
Sortino ratio Return per unit of downside risk	2.53	3.55	-1.02
Omega ratio Gain probability vs. loss probability	1.33	1.47	-0.13
Calmar ratio Return relative to maximum drawdown	2.03	3.71	-1.68
Martin ratio Return relative to average drawdown	7.94	14.30	-6.36
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GFAFX vs. QQQ - Sharpe Ratio Comparison

The current GFAFX Sharpe Ratio is 1.85, which is lower than the QQQ Sharpe Ratio of 2.73. The chart below compares the historical Sharpe Ratios of GFAFX 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

	GFAFX	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.85	2.73	-0.88
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.61	0.83	-0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.81	0.99	-0.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.41	+0.15

Drawdowns

GFAFX vs. QQQ - Drawdown Comparison

The maximum GFAFX drawdown since its inception was -51.87%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for GFAFX and QQQ.

Drawdown Indicators

	GFAFX	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-51.87%	-82.97%	+31.10%
Max Drawdown (1Y) Largest decline over 1 year	-13.79%	-11.96%	-1.83%
Max Drawdown (3Y) Largest decline over 3 years	-21.57%	-22.77%	+1.20%
Max Drawdown (5Y) Largest decline over 5 years	-36.41%	-35.12%	-1.29%
Max Drawdown (10Y) Largest decline over 10 years	-36.41%	-35.12%	-1.29%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-8.62%	-32.79%	+24.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.53%	3.11%	+0.42%

Volatility

GFAFX vs. QQQ - Volatility Comparison

The current volatility for American Funds Growth Fund of America Class F-1 (GFAFX) is 3.62%, while Invesco QQQ ETF (QQQ) has a volatility of 4.48%. This indicates that GFAFX experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GFAFX	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.62%	4.48%	-0.86%
Volatility (6M) Calculated over the trailing 6-month period	11.67%	12.11%	-0.44%
Volatility (1Y) Calculated over the trailing 1-year period	15.19%	15.95%	-0.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.25%	22.39%	-2.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.69%	22.30%	-2.61%

GFAFX vs. QQQ - Expense Ratio Comparison

GFAFX has a 0.65% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

GFAFX vs. QQQ - Dividend Comparison

GFAFX's dividend yield for the trailing twelve months is around 9.73%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GFAFX American Funds Growth Fund of America Class F-1	9.73%	10.75%	9.01%	7.41%	4.02%	8.16%	4.28%	7.14%	11.96%	6.98%	6.60%	8.86%
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 GFAFX and QQQ in my portfolio?

With a correlation of 0.93, GFAFX and QQQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, GFAFX or QQQ?

QQQ has higher volatility (4.48%) compared to GFAFX (3.62%). In terms of maximum drawdown, GFAFX dropped -51.87% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.73 vs 1.85), 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.