CDX vs QQQ
Simplify High Yield ETF vs Invesco QQQ Trust, Series 1
Which is better, CDX or QQQ?
High Yield Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 79.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | CDX | QQQ |
|---|---|---|
| Expense Ratio | 0.25% | 0.18%Best |
| AUM | $360M | $486.1B |
| Dividend Yield | 8.32% | 0.44% |
| Holdings | 229 | 107 |
| YTD Return | -2.51% | +17.54%Best |
| 1Y Return | -2.87% | +25.59%Best |
| 3Y Return (annualized) | +6.96% | +24.63%Best |
| 5Y Return (annualized) | - | +14.18% |
| Volatility (annualized) | 7.4%Best | 20.9% |
| Max Drawdown | -13.2%Best | -29.6% |
| $10,000 over 4.6 years | $11,898 | $20,916Best |
| Top 10 Weight | 79.1% | 46.5%Best |
| Fund Family | Simplify Exchange Traded Funds | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Growth |
| Inception | Feb 14, 2022 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 4.6 years row, are measured over the window both funds cover: Feb 15, 2022 to Sep 4, 2026 (4.6 years).
CDX vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.6 years both funds cover.
CDX vs QQQ Performance
Simplify High Yield ETF (CDX) is an ETF from Simplify Exchange Traded Funds and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year CDX returned -2.87% while QQQ returned +25.59%. Year to date, CDX is down 2.51% versus a gain of 17.54% for QQQ.
Over three years, CDX compounded at +6.96% per year against +24.63% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 7.4% 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 -29.6% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.60. They move together some of the time, and apart the rest.
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 8.32% against 0.44% for QQQ.
Holdings Overlap
5.0% of CDX's money is in holdings QQQ also owns. 37.8% of QQQ's money is in holdings CDX also owns.
The two portfolios partly overlap.
24 positions in common, counted across the 210 positions we hold weights for in CDX and 102 in QQQ, against full books of 229 and 107.
What only one of them owns
Our book lists 72 positions for QQQ that do not appear in our book for CDX (59.7% of the fund), and 80 for CDX that do not appear in QQQ (93.7%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in CDX | Weight in QQQ | Difference |
|---|---|---|---|
| AAPLApple, Inc | 0.21% | 7.27% | 7.06% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 0.27% | 5.76% | 5.49% |
| GOOGLAlphabet Inc.Class A | 0.10% | 3.36% | 3.26% |
| AVGOBroadcom Inc | 0.21% | 3.16% | 2.95% |
| GOOGAlphabet Inc. C | 0.10% | 3.13% | 3.03% |
| METAMeta Platform Inc | 0.21% | 2.78% | 2.57% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.19% | 2.10% | 1.91% |
| AMATApplied Materials, Inc. | 0.18% | 1.86% | 1.68% |
| LRCXLam Research Corp 3.125 06/15/2060 | 0.18% | 1.69% | 1.51% |
| KLACKla Corp | 0.17% | 1.11% | 0.94% |
37.8% of QQQ is already inside CDX.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $7 a year on a $10,000 investment.
Which performed better, CDX or QQQ?
Over the past year CDX returned -2.87% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, CDX or QQQ?
QQQ has been the more volatile fund at 20.9% annualized versus 7.4% for CDX. Worst drawdown: CDX -13.2% vs QQQ -29.6%.
Should I hold both CDX and QQQ?
CDX and QQQ have a monthly-return correlation of 0.60, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between CDX and QQQ?
37.8% of QQQ's money is in holdings CDX also owns. 37.8% of QQQ's is in holdings CDX also owns. They hold 24 positions in common, counted across the 210 positions we hold weights for in CDX and 102 in QQQ.
Which pays a higher dividend, CDX or QQQ?
CDX yields 8.32% while QQQ yields 0.44%, so CDX currently pays the higher dividend yield.
Is QQQ better than CDX?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 79.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.