CGIC vs QQQ
Capital Group International Core Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. CGIC delivered stronger 1-year returns. CGIC offers more diversification with 193 holdings.
Side-by-Side Comparison
| Metric | CGIC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.54% | 0.18% | |
| AUM | $2.2B | $455.8B | |
| Dividend Yield | 1.67% | 0.41% | |
| Holdings | 202 | 108 | |
| YTD Return | +12.59% | +18.31% | |
| 1Y Return | +25.81% | +25.37% | |
| 3Y Return (annualized) | - | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 11.2% | 30.6% | |
| Max Drawdown | -13.1% | -83.0% | |
| Fund Family | Capital Group (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 25, 2024 | Mar 10, 1999 |
CGIC vs QQQ Performance
Capital Group International Core Equity ETF (CGIC) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGIC returned +25.81% while QQQ returned +25.37%. Year to date, CGIC is up 12.59% versus a gain of 18.31% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 11.2% for CGIC. 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 -13.1% for CGIC 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGIC charges 0.54% per year while QQQ charges 0.18%. On a $10,000 position that is $54 vs $18 annually, a gap of $36 per year that compounds over a long holding period. On income, CGIC currently yields 1.67% against 0.41% for QQQ.
Holdings Overlap
CGIC and QQQ share 4 holdings out of 292 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGIC or QQQ?
CGIC has an expense ratio of 0.54% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, CGIC or QQQ?
Over the past year CGIC returned +25.81% vs +25.37% for QQQ, so CGIC leads on 1-year performance. Over the longest common window we track (2 years), CGIC annualized +22.30% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, CGIC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.2% for CGIC. Worst drawdown: CGIC -13.1% vs QQQ -83.0%.
Should I hold both CGIC and QQQ?
CGIC and QQQ have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGIC and QQQ?
CGIC and QQQ share 4 common holdings with a 1.9% weight overlap. Combined, they hold 292 unique securities.
Which pays a higher dividend, CGIC or QQQ?
CGIC yields 1.67% while QQQ yields 0.41%, so CGIC currently pays the higher dividend yield.
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