STEP vs. QQQ

Last updated Jun 4, 2026

STEP (StepStone Group Inc.) is a stock, while QQQ (Invesco QQQ ETF) is Nasdaq-100 fund tracking the NASDAQ-100 Index. Over the past 5 years, STEP returned 9.48%/yr vs 17.97%/yr for QQQ. At a 0.49 correlation, their price movements are largely independent.

Performance

STEP vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in StepStone Group Inc. (STEP) 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, STEP achieves a -31.60% return, which is significantly lower than QQQ's 21.30% return.

STEP

• 1D: -5.30%
• 1M: -19.20%
• YTD: -31.60%
• 6M: -29.81%
• 1Y: -21.58%
• 3Y*: 26.53%
• 5Y*: 9.48%
• 10Y*: —

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)

STEP vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
STEP StepStone Group Inc.	-31.60%	13.62%	85.94%	31.66%	-37.82%	5.43%	59.20%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	54.86%	-32.58%	27.42%	14.62%

Correlation

The correlation between STEP and QQQ is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (All Time) Calculated using the full available price history since Sep 17, 2020	0.49

The correlation between STEP and QQQ shifts across timeframes, from 0.36 (1 year) to 0.53 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

STEP vs. QQQ — Risk / Return Rank

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

STEP

STEP Risk / Return Rank: 20
STEP Sharpe Ratio Rank: 19
STEP Sortino Ratio Rank: 20
STEP Omega Ratio Rank: 20
STEP Calmar Ratio Rank: 23
STEP Martin Ratio Rank: 18

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.

STEP vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for StepStone Group Inc. (STEP) 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.

	STEP	QQQ	Difference
Sharpe ratio Return per unit of total volatility	-0.51	2.64	-3.14
Sortino ratio Return per unit of downside risk	-0.48	3.45	-3.92
Omega ratio Gain probability vs. loss probability	0.94	1.45	-0.51
Calmar ratio Return relative to maximum drawdown	-0.50	3.51	-4.01
Martin ratio Return relative to average drawdown	-1.09	13.49	-14.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

STEP vs. QQQ - Sharpe Ratio Comparison

The current STEP Sharpe Ratio is -0.51, which is lower than the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of STEP 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

	STEP	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.51	2.64	-3.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.81	-0.58
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.99	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.41	-0.10

Drawdowns

STEP vs. QQQ - Drawdown Comparison

The maximum STEP drawdown since its inception was -60.19%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for STEP and QQQ.

Drawdown Indicators

	STEP	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-60.19%	-82.97%	+22.78%
Max Drawdown (1Y) Largest decline over 1 year	-43.10%	-11.96%	-31.14%
Max Drawdown (3Y) Largest decline over 3 years	-43.10%	-22.77%	-20.33%
Max Drawdown (5Y) Largest decline over 5 years	-60.19%	-35.12%	-25.07%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	-42.45%	-0.26%	-42.19%
Average Drawdown Average peak-to-trough decline	-25.87%	-32.79%	+6.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.80%	3.11%	+16.69%

Volatility

STEP vs. QQQ - Volatility Comparison

StepStone Group Inc. (STEP) has a higher volatility of 11.84% compared to Invesco QQQ ETF (QQQ) at 4.49%. This indicates that STEP'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

	STEP	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.84%	4.49%	+7.35%
Volatility (6M) Calculated over the trailing 6-month period	35.55%	12.10%	+23.45%
Volatility (1Y) Calculated over the trailing 1-year period	42.78%	15.94%	+26.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	40.96%	22.38%	+18.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	41.36%	22.29%	+19.07%

Dividends

STEP vs. QQQ - Dividend Comparison

STEP's dividend yield for the trailing twelve months is around 3.39%, 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%
STEP StepStone Group Inc.	3.39%	2.24%	1.81%	3.36%	2.98%	0.87%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both STEP and QQQ in my portfolio?

STEP and QQQ have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, STEP or QQQ?

STEP has higher volatility (11.84%) compared to QQQ (4.49%). In terms of maximum drawdown, STEP dropped -60.19% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.64 vs -0.51), 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.