RGAGX vs. QQQ
Compare and contrast key facts about American Funds The Growth Fund of America Class R-6 (RGAGX) and Invesco QQQ (QQQ).
RGAGX is managed by American Funds. It was launched on Dec 1, 1973. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: RGAGX or QQQ.
Key characteristics
| RGAGX | QQQ | |
|---|---|---|
| YTD Return | 7.74% | 3.82% |
| 1Y Return | 32.43% | 32.66% |
| 3Y Return (Ann) | 4.48% | 8.61% |
| 5Y Return (Ann) | 13.43% | 18.53% |
| 10Y Return (Ann) | 13.24% | 18.13% |
| Sharpe Ratio | 1.75 | 2.00 |
| Daily Std Dev | 18.41% | 16.23% |
| Max Drawdown | -36.19% | -82.98% |
| Current Drawdown | -4.70% | -4.88% |
Correlation
The correlation between RGAGX and QQQ is 0.92, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
RGAGX vs. QQQ - Performance Comparison
In the year-to-date period, RGAGX achieves a 7.74% return, which is significantly higher than QQQ's 3.82% return. Over the past 10 years, RGAGX has underperformed QQQ with an annualized return of 13.24%, while QQQ has yielded a comparatively higher 18.13% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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RGAGX vs. QQQ - Expense Ratio Comparison
RGAGX has a 0.30% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
RGAGX vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds The Growth Fund of America Class R-6 (RGAGX) and Invesco QQQ (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.
Dividends
RGAGX vs. QQQ - Dividend Comparison
RGAGX's dividend yield for the trailing twelve months is around 7.14%, more than QQQ's 0.62% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
RGAGX American Funds The Growth Fund of America Class R-6 | 7.14% | 7.70% | 4.44% | 8.49% | 4.57% | 7.67% | 12.36% | 7.34% | 6.95% | 9.22% | 10.99% | 7.70% |
QQQ Invesco QQQ | 0.62% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
RGAGX vs. QQQ - Drawdown Comparison
The maximum RGAGX drawdown since its inception was -36.19%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for RGAGX and QQQ. For additional features, visit the drawdowns tool.
Volatility
RGAGX vs. QQQ - Volatility Comparison
The current volatility for American Funds The Growth Fund of America Class R-6 (RGAGX) is 5.03%, while Invesco QQQ (QQQ) has a volatility of 5.44%. This indicates that RGAGX 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.