CGMM vs QQQ
Capital Group US Small and Mid Cap ETF vs Invesco QQQ Trust, Series 1
Which is better, CGMM or QQQ?
Mid Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. CGMM is less concentrated, with 20.8% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | CGMM | QQQ |
|---|---|---|
| Expense Ratio | 0.51% | 0.18%Best |
| AUM | $3.4B | $483.5B |
| Dividend Yield | 0.38% | 0.44% |
| Holdings | 118 | 107 |
| YTD Return | +8.28% | +21.71%Best |
| 1Y Return | +13.07% | +25.89%Best |
| 3Y Return (annualized) | - | +28.80% |
| 5Y Return (annualized) | - | +15.67% |
| Volatility (annualized) | 14.3%Best | 20.1% |
| Max Drawdown | -21.0%Best | -22.8% |
| $10,000 over 1.7 years | $12,245 | $14,653Best |
| Top 10 Weight | 20.8%Best | 46.5% |
| Fund Family | Capital Group (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Growth |
| Inception | Jan 14, 2025 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 1.7 years row, are measured over the window both funds cover: Jan 16, 2025 to Sep 25, 2026 (1.7 years).
CGMM vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.7 years both funds cover.
CGMM vs QQQ Performance
Capital Group US Small and Mid Cap ETF (CGMM) is an ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year CGMM returned +13.07% while QQQ returned +25.89%. Year to date, CGMM is up 8.28% versus a gain of 21.71% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 14.3% for CGMM. 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 -21.0% for CGMM and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.66. They move together some of the time, and apart the rest.
Fees and Cost Over Time
CGMM charges 0.51% per year while QQQ charges 0.18%. On a $10,000 position that is $51 vs $18 annually, a gap of $33 per year that compounds over a long holding period. On income, CGMM currently yields 0.38% against 0.44% for QQQ.
Holdings Overlap
8.9% of CGMM's money is in holdings QQQ also owns. 2.4% of QQQ's money is in holdings CGMM also owns.
CGMM and QQQ share little of their money.
8 positions in common, counted across the 116 positions we hold weights for in CGMM and 102 in QQQ, against full books of 118 and 107.
What only one of them owns
Our book lists 88 positions for QQQ that do not appear in our book for CGMM (95.1% of the fund), and 100 for CGMM that do not appear in QQQ (86.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in CGMM | Weight in QQQ | Difference |
|---|---|---|---|
| DASHDoordash Inc - A | 2.09% | 0.37% | 1.72% |
| EXCExelon | 1.86% | 0.21% | 1.65% |
| MNSTMonster Beverage Corp. | 1.11% | 0.41% | 0.70% |
| FANGDiamondback Energy, Inc. | 1.10% | 0.23% | 0.87% |
| CPRTCopart Inc | 1.06% | 0.12% | 0.94% |
| DDOGDatadog Inc | 0.66% | 0.41% | 0.25% |
| CSXCsx Corp. | 0.59% | 0.42% | 0.17% |
| BKRBaker Hughes Co | 0.43% | 0.27% | 0.16% |
You are not choosing between two funds in isolation.
Whichever of CGMM and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, CGMM or QQQ?
CGMM has an expense ratio of 0.51% while QQQ charges 0.18%. QQQ is the cheaper option, by $33 a year on a $10,000 investment.
Which performed better, CGMM or QQQ?
Over the past year CGMM returned +13.07% vs +25.89% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), CGMM annualized +12.65% vs +25.20% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, CGMM or QQQ?
QQQ has been the more volatile fund at 20.1% annualized versus 14.3% for CGMM. Worst drawdown: CGMM -21.0% vs QQQ -22.8%.
Should I hold both CGMM and QQQ?
CGMM and QQQ have a monthly-return correlation of 0.66, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between CGMM and QQQ?
8.9% of CGMM's money is in holdings QQQ also owns. 2.4% of QQQ's is in holdings CGMM also owns. They hold 8 positions in common, counted across the 116 positions we hold weights for in CGMM and 102 in QQQ.
Which pays a higher dividend, CGMM or QQQ?
CGMM yields 0.38% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than CGMM?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. CGMM is less concentrated, with 20.8% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.