KSCOX vs. QQQ

Last updated Jun 13, 2026

KSCOX (Kinetics Small Cap Opportunities Fund) and QQQ (Invesco QQQ ETF) are both funds - KSCOX is a Small Cap Growth Equities fund managed by Kinetics, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Over the past 10 years, KSCOX returned 19.39%/yr vs 21.79%/yr for QQQ. A 0.54 correlation means they provide meaningful diversification when combined. KSCOX charges 1.64%/yr vs 0.18%/yr for QQQ.

Performance

KSCOX vs. QQQ - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with KSCOX having a 16.92% return and QQQ slightly higher at 17.57%. Over the past 10 years, KSCOX has underperformed QQQ with an annualized return of 19.39%, while QQQ has yielded a comparatively higher 21.79% annualized return.

KSCOX

• 1D: -0.30%
• 1M: -1.82%
• YTD: 16.92%
• 6M: 17.67%
• 1Y: 3.51%
• 3Y*: 25.95%
• 5Y*: 13.81%
• 10Y*: 19.39%

QQQ

• 1D: 0.59%
• 1M: 1.75%
• YTD: 17.57%
• 6M: 17.85%
• 1Y: 37.55%
• 3Y*: 26.43%
• 5Y*: 16.85%
• 10Y*: 21.79%

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

KSCOX vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KSCOX Kinetics Small Cap Opportunities Fund	16.92%	-8.66%	68.42%	-14.77%	31.96%	50.32%	2.30%	27.06%	0.29%	26.23%
QQQ Invesco QQQ ETF	17.57%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between KSCOX and QQQ is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (10Y) Calculated over the trailing 10-year period	0.38
Correlation (All Time) Calculated using the full available price history since Mar 20, 2000	0.54

Over the past year, the correlation between KSCOX and QQQ has dropped to 0.22 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.

Return for Risk

KSCOX vs. QQQ — Risk / Return Rank

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

KSCOX

KSCOX Risk / Return Rank: 5
KSCOX Sharpe Ratio Rank: 5
KSCOX Sortino Ratio Rank: 6
KSCOX Omega Ratio Rank: 6
KSCOX Calmar Ratio Rank: 5
KSCOX Martin Ratio Rank: 5

QQQ

QQQ Risk / Return Rank: 71
QQQ Sharpe Ratio Rank: 75
QQQ Sortino Ratio Rank: 70
QQQ Omega Ratio Rank: 73
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 70

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.

KSCOX vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Kinetics Small Cap Opportunities Fund (KSCOX) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	KSCOX	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	0.15	2.09	-1.94
Sortino ratio: Return per unit of downside risk	0.39	2.73	-2.34
Omega ratio: Gain probability vs. loss probability	1.05	1.37	-0.32
Calmar ratio: Return relative to maximum drawdown	0.21	3.01	-2.80
Martin ratio: Return relative to average drawdown	0.47	11.22	-10.76

KSCOX vs. QQQ - Sharpe Ratio Comparison

The current KSCOX Sharpe Ratio is 0.15, which is lower than the QQQ Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of KSCOX 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.

Drawdowns

KSCOX vs. QQQ - Drawdown Comparison

The maximum KSCOX drawdown since its inception was -70.09%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for KSCOX and QQQ.

Drawdown Indicators

	KSCOX	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-70.09%	-82.97%	+12.88%
Max Drawdown (1Y) Largest decline over 1 year	-18.95%	-11.96%	-6.99%
Max Drawdown (3Y) Largest decline over 3 years	-33.10%	-22.77%	-10.33%
Max Drawdown (5Y) Largest decline over 5 years	-33.10%	-35.12%	+2.02%
Max Drawdown (10Y) Largest decline over 10 years	-47.09%	-35.12%	-11.97%
Current Drawdown Current decline from peak	-19.79%	-3.33%	-16.46%
Average Drawdown Average peak-to-trough decline	-14.89%	-32.75%	+17.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.65%	3.20%	+5.45%

Volatility

KSCOX vs. QQQ - Volatility Comparison

Kinetics Small Cap Opportunities Fund (KSCOX) has a higher volatility of 7.96% compared to Invesco QQQ ETF (QQQ) at 7.56%. This indicates that KSCOX'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

	KSCOX	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.96%	7.56%	+0.40%
Volatility (6M) Calculated over the trailing 6-month period	22.22%	13.81%	+8.41%
Volatility (1Y) Calculated over the trailing 1-year period	26.51%	17.19%	+9.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.95%	22.55%	+5.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.18%	22.38%	+3.80%

KSCOX vs. QQQ - Expense Ratio Comparison

KSCOX has a 1.64% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

KSCOX vs. QQQ - Dividend Comparison

KSCOX's dividend yield for the trailing twelve months is around 0.15%, less than QQQ's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KSCOX Kinetics Small Cap Opportunities Fund	0.15%	0.18%	3.58%	6.71%	0.00%	1.67%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
QQQ Invesco QQQ ETF	0.39%	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 KSCOX and QQQ in my portfolio?

KSCOX and QQQ have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KSCOX or QQQ?

KSCOX has higher volatility (7.96%) compared to QQQ (7.56%). In terms of maximum drawdown, KSCOX dropped -70.09% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.09 vs 0.15), 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.