ETF QQQ VOO IVV 5 yrs return mismatch

Discussion in 'Shares & Funds' started by Chris21, 20th Oct, 2021.

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  1. Chris21

    Chris21 Well-Known Member

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    All 3 track SP 500 but still shows different return over 5 yrs period ? At least , QQQ and VOO should be same given both are US domiciled (no currency conversion) Thoughts ?
     

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    Chris21, 20th Oct, 2021
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  2. Hockey Monkey

    Hockey Monkey Well-Known Member

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    QQQ is NASDAQ 100, VOO is S&P 500. Different indexes. IVV and VOO are different currencies as you already mentioned but should track closely as IVV is unhedged.
     
    Hockey Monkey, 20th Oct, 2021
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  3. Chris21

    Chris21 Well-Known Member

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    Apologies. I mixed up. Yes QQQ/NDQ and VOO/IVV tracks different indices. Does direct investment in QQQ (0.20) or QQQM (0.15)make more sense given cheaper MER compared to NDQ (0.48) ?
     

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    Last edited: 20th Oct, 2021
    Chris21, 20th Oct, 2021
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  4. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Apart from tracking error and fees, have you considered dividends?

    For example, checking VAS vs VGS in yahoo finance charts is useless, TSR needs to include yield. I use Sharesight but interested if there are other options.
     
    Zenith Chaos, 21st Oct, 2021
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  5. Hockey Monkey

    Hockey Monkey Well-Known Member

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    Yes, if you have access to wholesale FX rates eg by using Interactive Brokers. US funds also avoid capital gains distributions through heartbeat trades so are more tax effective.
     
    Hockey Monkey, 21st Oct, 2021
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  6. Chris21

    Chris21 Well-Known Member

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    Right now, I have StakeSMSF, which charges 0.7% FX. May be I should explore if I can use StakeSMSF to open SMSF Trading account with IB.
     
    Chris21, 22nd Oct, 2021
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  7. Hockey Monkey

    Hockey Monkey Well-Known Member

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    You would need to go to their Plus plan for that which is $2640 p.a. If you really want to use IBKR, I'd look into other SMSF providers like iCare SMSF

    No need to go VOO when we have VTS and IVV on the ASX and I personally am not really interested in NDQ.

    Which exchange a company lists on should have little bearing on investment choice and betting on tech/healthcare feels like chasing recent past performance.

    This video has a section on the NASDAQ around the 8 minute mark.
     
    Hockey Monkey, 22nd Oct, 2021
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  8. Gav

    Gav Well-Known Member

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    Good video!
     
    Gav, 22nd Oct, 2021
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  9. Baker

    Baker Well-Known Member

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    Ben Felix is very easy to listen to.
     
    Baker, 22nd Oct, 2021
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