CDX vs QQQ
Simplify High Yield ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. CDX offers more diversification with 156 holdings.
Side-by-Side Comparison
| Metric | CDX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $377M | $455.8B | |
| Dividend Yield | 8.31% | 0.41% | |
| Holdings | 227 | 108 | |
| YTD Return | -2.08% | +17.46% | |
| 1Y Return | -3.08% | +26.02% | |
| 3Y Return (annualized) | +7.33% | +25.51% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 7.5% | 30.6% | |
| Max Drawdown | -13.2% | -83.0% | |
| Fund Family | Simplify Exchange Traded Funds | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 14, 2022 | Mar 10, 1999 |
CDX vs QQQ Performance
Simplify High Yield ETF (CDX) is a ETF from Simplify Exchange Traded Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CDX returned -3.08% while QQQ returned +26.02%. Year to date, CDX is down 2.08% versus a gain of 17.46% for QQQ.
Over three years, CDX compounded at +7.33% per year against +25.51% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.08% annualized vs +4.01%. 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 7.5% for CDX. 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 -13.2% for CDX 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CDX charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, CDX currently yields 8.31% against 0.41% for QQQ.
Holdings Overlap
CDX and QQQ share 10 holdings out of 249 unique holdings combined, representing a 2.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CDX or QQQ?
CDX has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, CDX or QQQ?
Over the past year CDX returned -3.08% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), CDX annualized +4.01% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, CDX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.5% for CDX. Worst drawdown: CDX -13.2% vs QQQ -83.0%.
Should I hold both CDX and QQQ?
CDX and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CDX and QQQ?
CDX and QQQ share 10 common holdings with a 2.4% weight overlap. Combined, they hold 249 unique securities.
Which pays a higher dividend, CDX or QQQ?
CDX yields 8.31% while QQQ yields 0.41%, so CDX currently pays the higher dividend yield.
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