CGMM vs QQQ
Capital Group US Small and Mid Cap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. CGMM offers more diversification with 236 holdings.
Side-by-Side Comparison
| Metric | CGMM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.51% | 0.18% | |
| AUM | $3.5B | $496.3B | |
| Dividend Yield | 0.38% | 0.44% | |
| Holdings | 236 | 108 | |
| YTD Return | +13.38% | +16.64% | |
| 1Y Return | +20.68% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 14.3% | 30.6% | |
| Max Drawdown | -21.0% | -83.0% | |
| Fund Family | Capital Group (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 14, 2025 | Mar 10, 1999 |
CGMM vs QQQ Performance
Capital Group US Small and Mid Cap ETF (CGMM) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGMM returned +20.68% while QQQ returned +27.27%. Year to date, CGMM is up 13.38% 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 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 -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 0.70. They usually move together, but the gap leaves some room for diversification.
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
CGMM and QQQ share 8 holdings out of 210 unique holdings combined, representing a 2.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $33 per year of difference.
Which performed better, CGMM or QQQ?
Over the past year CGMM returned +20.68% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), CGMM annualized +16.78% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, CGMM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.3% for CGMM. Worst drawdown: CGMM -21.0% vs QQQ -83.0%.
Should I hold both CGMM and QQQ?
CGMM and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGMM and QQQ?
CGMM and QQQ share 8 common holdings with a 2.4% weight overlap. Combined, they hold 210 unique securities.
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.
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