CA vs QQQ
Xtrackers California Municipal Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
CA has a lower expense ratio. QQQ delivered stronger 1-year returns. CA offers more diversification with 259 holdings.
Side-by-Side Comparison
| Metric | CA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.18% | |
| AUM | $21M | $496.3B | |
| Dividend Yield | 3.21% | 0.44% | |
| Holdings | 259 | 108 | |
| YTD Return | +1.16% | +17.30% | |
| 1Y Return | +5.72% | +24.93% | |
| 3Y Return (annualized) | - | +26.19% | |
| 5Y Return (annualized) | - | +15.34% | |
| Volatility (annualized) | 4.1% | 30.6% | |
| Max Drawdown | -5.2% | -83.0% | |
| Fund Family | Xtrackers ETFs | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 14, 2023 | Mar 10, 1999 |
CA vs QQQ Performance
Xtrackers California Municipal Bond ETF (CA) is a ETF from Xtrackers ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CA returned +5.72% while QQQ returned +24.93%. Year to date, CA is up 1.16% versus a gain of 17.30% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.1% for CA. 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 -5.2% for CA 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CA charges 0.07% per year while QQQ charges 0.18%. On a $10,000 position that is $7 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, CA currently yields 3.21% against 0.44% for QQQ.
Holdings Overlap
CA and QQQ share 0 holdings out of 262 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CA or QQQ?
CA has an expense ratio of 0.07% while QQQ charges 0.18%. CA is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, CA or QQQ?
Over the past year CA returned +5.72% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), CA annualized +2.81% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, CA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.1% for CA. Worst drawdown: CA -5.2% vs QQQ -83.0%.
Should I hold both CA and QQQ?
CA and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CA and QQQ?
CA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 262 unique securities.
Which pays a higher dividend, CA or QQQ?
CA yields 3.21% while QQQ yields 0.44%, so CA currently pays the higher dividend yield.
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