CGHY vs QQQ
Capital Group High Yield Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. CGHY offers more diversification with 202 holdings.
Side-by-Side Comparison
| Metric | CGHY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $126M | $496.3B | |
| Dividend Yield | 5.50% | 0.44% | |
| Holdings | 202 | 108 | |
| YTD Return | +2.52% | +16.64% | |
| 1Y Return | +5.74% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 2.2% | 30.6% | |
| Max Drawdown | -2.4% | -83.0% | |
| Fund Family | Capital Group (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 24, 2025 | Mar 10, 1999 |
CGHY vs QQQ Performance
Capital Group High Yield Bond ETF (CGHY) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGHY returned +5.74% while QQQ returned +27.27%. Year to date, CGHY is up 2.52% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 2.2% for CGHY. 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 -2.4% for CGHY 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CGHY charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, CGHY currently yields 5.50% against 0.44% for QQQ.
Holdings Overlap
CGHY and QQQ share 0 holdings out of 319 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, CGHY or QQQ?
CGHY has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, CGHY or QQQ?
Over the past year CGHY returned +5.74% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), CGHY annualized +5.50% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, CGHY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 2.2% for CGHY. Worst drawdown: CGHY -2.4% vs QQQ -83.0%.
Should I hold both CGHY and QQQ?
CGHY and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGHY and QQQ?
CGHY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 319 unique securities.
Which pays a higher dividend, CGHY or QQQ?
CGHY yields 5.50% while QQQ yields 0.44%, so CGHY currently pays the higher dividend yield.
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