QVMS vs. QQQ

Last updated Jun 5, 2026

QVMS (Invesco S&P SmallCap 600 QVM Multi-factor ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - QVMS is a Multi-factor fund tracking the S&P Small Cap 600, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 3 years, QVMS returned 16.26%/yr vs 28.54%/yr for QQQ. A 0.65 correlation means they provide meaningful diversification when combined. QVMS charges 0.15%/yr vs 0.18%/yr for QQQ.

Performance

QVMS vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P SmallCap 600 QVM Multi-factor ETF (QVMS) 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, QVMS achieves a 17.44% return, which is significantly lower than QQQ's 20.71% return.

QVMS

• 1D: 1.27%
• 1M: 2.14%
• YTD: 17.44%
• 6M: 16.16%
• 1Y: 33.90%
• 3Y*: 16.26%
• 5Y*: —
• 10Y*: —

QQQ

• 1D: -0.48%
• 1M: 8.66%
• YTD: 20.71%
• 6M: 19.19%
• 1Y: 40.74%
• 3Y*: 28.54%
• 5Y*: 17.86%
• 10Y*: 21.84%

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

QVMS vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
QVMS Invesco S&P SmallCap 600 QVM Multi-factor ETF	17.44%	5.56%	9.50%	16.89%	-14.61%	4.45%
QQQ Invesco QQQ ETF	20.71%	20.77%	25.58%	54.86%	-32.58%	12.52%

Correlation

The correlation between QVMS and QQQ is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (All Time) Calculated using the full available price history since Jul 1, 2021	0.65

The correlation between QVMS and QQQ has been stable across timeframes, ranging from 0.57 to 0.65 - a consistent structural relationship.

QVMS vs. QQQ - Sectors Allocation Comparison

Sectors	QVMS	QQQ
Financial Services	18.3%	0.2%
Industrials	16.7%	2.8%
Technology	15.5%	53.8%
Consumer Cyclical	13.2%	12.3%
Healthcare	10.8%	4.2%
Energy	7.5%	0.6%
Real Estate	7.1%	0.1%
Basic Materials	4.5%	1.1%
Consumer Defensive	2.6%	7.7%
Utilities	2.1%	1.4%
Communication Services	1.7%	15.8%

Return for Risk

QVMS vs. QQQ — Risk / Return Rank

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

QVMS

QVMS Risk / Return Rank: 64
QVMS Sharpe Ratio Rank: 58
QVMS Sortino Ratio Rank: 61
QVMS Omega Ratio Rank: 55
QVMS Calmar Ratio Rank: 77
QVMS Martin Ratio Rank: 71

QQQ

QQQ Risk / Return Rank: 74
QQQ Sharpe Ratio Rank: 80
QQQ Sortino Ratio Rank: 76
QQQ Omega Ratio Rank: 75
QQQ Calmar Ratio Rank: 70
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.

QVMS vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P SmallCap 600 QVM Multi-factor ETF (QVMS) 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.

	QVMS	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.94	2.57	-0.63
Sortino ratio: Return per unit of downside risk	2.82	3.37	-0.55
Omega ratio: Gain probability vs. loss probability	1.33	1.44	-0.11
Calmar ratio: Return relative to maximum drawdown	3.88	3.42	+0.46
Martin ratio: Return relative to average drawdown	13.08	13.14	-0.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QVMS vs. QQQ - Sharpe Ratio Comparison

The current QVMS Sharpe Ratio is 1.94, which is comparable to the QQQ Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of QVMS 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

	QVMS	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.94	2.57	-0.63
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.80	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.98	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.41	-0.06

Drawdowns

QVMS vs. QQQ - Drawdown Comparison

The maximum QVMS drawdown since its inception was -28.05%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for QVMS and QQQ.

Drawdown Indicators

	QVMS	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-28.05%	-82.97%	+54.92%
Max Drawdown (1Y) Largest decline over 1 year	-8.78%	-11.96%	+3.18%
Max Drawdown (3Y) Largest decline over 3 years	-28.05%	-22.77%	-5.28%
Max Drawdown (5Y) Largest decline over 5 years	—	-35.12%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	0.00%	-0.74%	+0.74%
Average Drawdown Average peak-to-trough decline	-9.10%	-32.78%	+23.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.60%	3.11%	-0.51%

Volatility

QVMS vs. QQQ - Volatility Comparison

Invesco S&P SmallCap 600 QVM Multi-factor ETF (QVMS) and Invesco QQQ ETF (QQQ) have volatilities of 4.68% and 4.51%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QVMS	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.68%	4.51%	+0.17%
Volatility (6M) Calculated over the trailing 6-month period	12.11%	12.10%	+0.01%
Volatility (1Y) Calculated over the trailing 1-year period	17.60%	15.94%	+1.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.25%	22.37%	-1.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.25%	22.29%	-1.04%

QVMS vs. QQQ - Expense Ratio Comparison

QVMS has a 0.15% expense ratio, which is lower than QQQ's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

QVMS vs. QQQ - Dividend Comparison

QVMS's dividend yield for the trailing twelve months is around 1.12%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
QVMS Invesco S&P SmallCap 600 QVM Multi-factor ETF	1.12%	1.10%	1.53%	1.51%	1.58%	0.64%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both QVMS and QQQ in my portfolio?

QVMS and QQQ have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QVMS or QQQ?

QVMS has higher volatility (4.68%) compared to QQQ (4.51%). In terms of maximum drawdown, QVMS dropped -28.05% vs QQQ's -82.97%.

Which ETF is better, QVMS or QQQ?

On 3-year performance, QQQ leads with 28.54% vs 16.26% for QVMS. On fees, QVMS is cheaper at 0.15% per year. On volatility, QQQ has been the lower-risk option at 4.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QVMS or QQQ?

Over the 3-year period, QQQ has performed better with a 28.54% return vs 16.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QVMS or QQQ?

QVMS is cheaper with a 0.15% expense ratio, compared with 0.18% for QQQ.

Which ETF pays a higher dividend yield, QVMS or QQQ?

QVMS has the higher dividend yield at 1.12%, compared with 0.38% for QQQ.

What is the main difference between QVMS and QQQ?

QVMS is categorized as Multi-factor, while QQQ is Nasdaq-100. QVMS tracks S&P Small Cap 600, while QQQ tracks NASDAQ-100 Index. Their fees differ too: 0.15% for QVMS and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.57 vs 1.94), 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.