CGDG vs QQQ
Capital Group Dividend Growers ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | CGDG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.18% | |
| AUM | $5.7B | $496.3B | |
| Dividend Yield | 2.24% | 0.44% | |
| Holdings | 102 | 108 | |
| YTD Return | +9.75% | +16.64% | |
| 1Y Return | +17.21% | +27.27% | |
| 3Y Return (annualized) | +19.13% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 8.7% | 30.6% | |
| Max Drawdown | -10.5% | -83.0% | |
| Fund Family | Capital Group (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 26, 2023 | Mar 10, 1999 |
CGDG vs QQQ Performance
Capital Group Dividend Growers ETF (CGDG) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGDG returned +17.21% while QQQ returned +27.27%. Year to date, CGDG is up 9.75% versus a gain of 16.64% for QQQ.
Over three years, CGDG compounded at +19.13% per year against +25.96% for QQQ. Across the full 3-year window we track, CGDG has the edge at +19.13% annualized vs +13.03%. 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 8.7% for CGDG. 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 -10.5% for CGDG 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGDG charges 0.47% per year while QQQ charges 0.18%. On a $10,000 position that is $47 vs $18 annually, a gap of $29 per year that compounds over a long holding period. On income, CGDG currently yields 2.24% against 0.44% for QQQ.
Holdings Overlap
CGDG and QQQ share 9 holdings out of 196 unique holdings combined, representing a 7.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGDG or QQQ?
CGDG has an expense ratio of 0.47% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, CGDG or QQQ?
Over the past year CGDG returned +17.21% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), CGDG annualized +19.13% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, CGDG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.7% for CGDG. Worst drawdown: CGDG -10.5% vs QQQ -83.0%.
Should I hold both CGDG and QQQ?
CGDG and QQQ have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGDG and QQQ?
CGDG and QQQ share 9 common holdings with a 7.6% weight overlap. Combined, they hold 196 unique securities.
Which pays a higher dividend, CGDG or QQQ?
CGDG yields 2.24% while QQQ yields 0.44%, so CGDG currently pays the higher dividend yield.
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