CGDV vs QQQ
Capital Group Dividend Value ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. CGDV offers more diversification with 116 holdings.
Side-by-Side Comparison
| Metric | CGDV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.33% | 0.18% | |
| AUM | $39.3B | $496.3B | |
| Dividend Yield | 1.19% | 0.44% | |
| Holdings | 116 | 108 | |
| YTD Return | +14.22% | +16.23% | |
| 1Y Return | +23.46% | +26.23% | |
| 3Y Return (annualized) | +24.66% | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 15.2% | 30.6% | |
| Max Drawdown | -21.8% | -83.0% | |
| Fund Family | Capital Group (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Feb 22, 2022 | Mar 10, 1999 |
CGDV vs QQQ Performance
Capital Group Dividend Value ETF (CGDV) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGDV returned +23.46% while QQQ returned +26.23%. Year to date, CGDV is up 14.22% versus a gain of 16.23% for QQQ.
Over three years, CGDV compounded at +24.66% per year against +25.75% for QQQ. Across the full 5-year window we track, CGDV has the edge at +18.85% annualized vs +13.02%. 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 15.2% for CGDV. 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 -21.8% for CGDV 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CGDV charges 0.33% per year while QQQ charges 0.18%. On a $10,000 position that is $33 vs $18 annually, a gap of $15 per year that compounds over a long holding period. On income, CGDV currently yields 1.19% against 0.44% for QQQ.
Holdings Overlap
CGDV and QQQ share 18 holdings out of 137 unique holdings combined, representing a 34.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGDV or QQQ?
CGDV has an expense ratio of 0.33% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, CGDV or QQQ?
Over the past year CGDV returned +23.46% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), CGDV annualized +18.85% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, CGDV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.2% for CGDV. Worst drawdown: CGDV -21.8% vs QQQ -83.0%.
Should I hold both CGDV and QQQ?
CGDV and QQQ have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGDV and QQQ?
CGDV and QQQ share 18 common holdings with a 34.3% weight overlap. Combined, they hold 137 unique securities.
Which pays a higher dividend, CGDV or QQQ?
CGDV yields 1.19% while QQQ yields 0.44%, so CGDV currently pays the higher dividend yield.
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