Nasdaq's Elite or S&P's Full Roster? Breaking Down QQQ vs.

Core Insights - The Invesco QQQ Trust (QQQ) and Invesco S&P 500 Equal Weight ETF (RSP) differ significantly in risk, sector exposure, and income potential, which are crucial for portfolio resilience [1][2] Cost and Size Comparison - QQQ has an expense ratio of 0.18% and AUM of $412.7 billion, while RSP has a slightly higher expense ratio of 0.20% and AUM of $78.7 billion [3] - The 1-year return for QQQ is 23.6%, compared to RSP's 14.1%, and QQQ has a dividend yield of 0.4% versus RSP's 1.6% [3][4] Performance and Risk Comparison - Over the past five years, QQQ experienced a maximum drawdown of -35.12%, while RSP had a drawdown of -21.37% [5] - An investment of $1,000 in QQQ would have grown to $1,993, while the same investment in RSP would have grown to $1,506 over five years [5] Sector Exposure and Diversification - RSP holds approximately 505 stocks with equal weight, providing broad sector exposure, particularly in Technology, Industrials, and Financial Services, each representing 14%-16% of assets [7] - QQQ is heavily concentrated in technology, with over 50% of its portfolio in this sector, and top holdings include Nvidia, Apple, and Microsoft, which together exceed 23% of assets [8][10] Investment Implications - QQQ offers higher growth potential but comes with greater volatility and sector concentration, making it suitable for investors comfortable with risk [12] - RSP provides broader diversification and a higher yield, appealing to income-focused investors and those seeking risk reduction [12]