CGHM vs QQQ
CGHM vs QQQ
Capital Group Municipal High-Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. CGHM offers more diversification with 562 holdings.
Side-by-Side Comparison
| Metric | CGHM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.18% | |
| AUM | $3.3B | $455.8B | |
| Dividend Yield | 3.54% | 0.41% | |
| Holdings | 3,277 | 108 | |
| YTD Return | +2.36% | +18.20% | |
| 1Y Return | +7.98% | +27.63% | |
| 3Y Return (annualized) | - | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 4.5% | 30.6% | |
| Max Drawdown | -5.9% | -83.0% | |
| Fund Family | Capital Group (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 25, 2024 | Mar 10, 1999 |
CGHM vs QQQ Performance
Capital Group Municipal High-Income ETF (CGHM) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGHM returned +7.98% while QQQ returned +27.63%. Year to date, CGHM is up 2.36% versus a gain of 18.20% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.5% for CGHM. 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 -5.9% for CGHM 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGHM charges 0.34% per year while QQQ charges 0.18%. On a $10,000 position that is $34 vs $18 annually, a gap of $16 per year that compounds over a long holding period. On income, CGHM currently yields 3.54% against 0.41% for QQQ.
Holdings Overlap
CGHM and QQQ share 0 holdings out of 665 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGHM or QQQ?
CGHM has an expense ratio of 0.34% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, CGHM or QQQ?
Over the past year CGHM returned +7.98% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), CGHM annualized +4.56% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, CGHM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.5% for CGHM. Worst drawdown: CGHM -5.9% vs QQQ -83.0%.
Should I hold both CGHM and QQQ?
CGHM and QQQ have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGHM and QQQ?
CGHM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 665 unique securities.
Which pays a higher dividend, CGHM or QQQ?
CGHM yields 3.54% while QQQ yields 0.41%, so CGHM currently pays the higher dividend yield.
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