AIFD vs QQQ
TCW Artificial Intelligence ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. AIFD delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | AIFD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $143M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 36 | 108 | |
| YTD Return | +34.75% | +16.23% | |
| 1Y Return | +62.39% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 26.4% | 30.6% | |
| Max Drawdown | -33.2% | -83.0% | |
| Fund Family | TCW ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 6, 2024 | Mar 10, 1999 |
AIFD vs QQQ Performance
TCW Artificial Intelligence ETF (AIFD) is a ETF from TCW ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AIFD returned +62.39% while QQQ returned +26.23%. Year to date, AIFD is up 34.75% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 26.4% for AIFD. 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 -33.2% for AIFD 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
AIFD charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, AIFD currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
AIFD and QQQ share 16 holdings out of 119 unique holdings combined, representing a 30.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AIFD or QQQ?
AIFD has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, AIFD or QQQ?
Over the past year AIFD returned +62.39% vs +26.23% for QQQ, so AIFD leads on 1-year performance. Over the longest common window we track (2 years), AIFD annualized +35.89% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, AIFD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 26.4% for AIFD. Worst drawdown: AIFD -33.2% vs QQQ -83.0%.
Should I hold both AIFD and QQQ?
AIFD and QQQ have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between AIFD and QQQ?
AIFD and QQQ share 16 common holdings with a 30.9% weight overlap. Combined, they hold 119 unique securities.
Which pays a higher dividend, AIFD or QQQ?
AIFD yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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