CGCB vs QQQ
Capital Group Core Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. CGCB offers more diversification with 766 holdings.
Side-by-Side Comparison
| Metric | CGCB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.18% | |
| AUM | $6.4B | $496.3B | |
| Dividend Yield | 4.27% | 0.44% | |
| Holdings | 766 | 108 | |
| YTD Return | -0.12% | +16.64% | |
| 1Y Return | +2.45% | +27.27% | |
| 3Y Return (annualized) | +5.23% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 5.5% | 30.6% | |
| Max Drawdown | -5.2% | -83.0% | |
| Fund Family | Capital Group (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 26, 2023 | Mar 10, 1999 |
CGCB vs QQQ Performance
Capital Group Core Bond ETF (CGCB) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGCB returned +2.45% while QQQ returned +27.27%. Year to date, CGCB is down 0.12% versus a gain of 16.64% for QQQ.
Over three years, CGCB compounded at +5.23% per year against +25.96% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.03% annualized vs +5.23%. 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 5.5% for CGCB. 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 CGCB 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGCB charges 0.27% per year while QQQ charges 0.18%. On a $10,000 position that is $27 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, CGCB currently yields 4.27% against 0.44% for QQQ.
Holdings Overlap
CGCB and QQQ share 1 holdings out of 444 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in CGCB | Weight in QQQ | Difference |
|---|---|---|---|
| TMUS | 0.46% | 0.82% | 0.36% |
Frequently Asked Questions
Which is cheaper, CGCB or QQQ?
CGCB has an expense ratio of 0.27% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, CGCB or QQQ?
Over the past year CGCB returned +2.45% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), CGCB annualized +5.23% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, CGCB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.5% for CGCB. Worst drawdown: CGCB -5.2% vs QQQ -83.0%.
Should I hold both CGCB and QQQ?
CGCB and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGCB and QQQ?
CGCB and QQQ share 1 common holdings with a 0.5% weight overlap. Combined, they hold 444 unique securities.
Which pays a higher dividend, CGCB or QQQ?
CGCB yields 4.27% while QQQ yields 0.44%, so CGCB currently pays the higher dividend yield.
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