ACWX vs QQQ
iShares MSCI ACWI ex US ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. ACWX delivered stronger 1-year returns. ACWX offers more diversification with 1,913 holdings.
Side-by-Side Comparison
| Metric | ACWX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.18% | |
| AUM | $12.0B | $496.3B | |
| Dividend Yield | 2.53% | 0.44% | |
| Holdings | 1,913 | 108 | |
| YTD Return | +15.69% | +16.64% | |
| 1Y Return | +27.74% | +27.27% | |
| 3Y Return (annualized) | +20.58% | +25.96% | |
| 5Y Return (annualized) | +9.43% | +14.54% | |
| Volatility (annualized) | 18.0% | 30.6% | |
| Max Drawdown | -60.6% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 26, 2008 | Mar 10, 1999 |
ACWX vs QQQ Performance
iShares MSCI ACWI ex US ETF (ACWX) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ACWX returned +27.74% while QQQ returned +27.27%. Year to date, ACWX is up 15.69% versus a gain of 16.64% for QQQ.
Over three years, ACWX compounded at +20.58% per year against +25.96% for QQQ; over five years the annualized figures are +9.43% and +14.54% respectively. Across the full 18-year window we track, QQQ has the edge at +13.03% annualized vs +3.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 18.0% for ACWX. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -60.6% for ACWX and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ACWX charges 0.32% per year while QQQ charges 0.18%. On a $10,000 position that is $32 vs $18 annually, a gap of $14 per year that compounds over a long holding period. On income, ACWX currently yields 2.53% against 0.44% for QQQ.
Holdings Overlap
ACWX and QQQ share 5 holdings out of 1451 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ACWX or QQQ?
ACWX has an expense ratio of 0.32% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, ACWX or QQQ?
Over the past year ACWX returned +27.74% vs +27.27% for QQQ, so ACWX leads on 1-year performance. Over the longest common window we track (18 years), ACWX annualized +3.19% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, ACWX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.0% for ACWX. Worst drawdown: ACWX -60.6% vs QQQ -83.0%.
Should I hold both ACWX and QQQ?
ACWX and QQQ have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ACWX and QQQ?
ACWX and QQQ share 5 common holdings with a 0.8% weight overlap. Combined, they hold 1451 unique securities.
Which pays a higher dividend, ACWX or QQQ?
ACWX yields 2.53% while QQQ yields 0.44%, so ACWX currently pays the higher dividend yield.
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