COWZ vs QQQ
Pacer US Cash Cows 100 ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. COWZ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | COWZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.18% | |
| AUM | $19.8B | $496.3B | |
| Dividend Yield | 1.85% | 0.44% | |
| Holdings | 102 | 108 | |
| YTD Return | +19.26% | +16.19% | |
| 1Y Return | +25.55% | +25.22% | |
| 3Y Return (annualized) | +14.40% | +25.47% | |
| 5Y Return (annualized) | +11.63% | +14.34% | |
| Volatility (annualized) | 18.7% | 30.6% | |
| Max Drawdown | -38.6% | -83.0% | |
| Fund Family | Pacer ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 16, 2016 | Mar 10, 1999 |
COWZ vs QQQ Performance
Pacer US Cash Cows 100 ETF (COWZ) is a ETF from Pacer ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year COWZ returned +25.55% while QQQ returned +25.22%. Year to date, COWZ is up 19.26% versus a gain of 16.19% for QQQ.
Over three years, COWZ compounded at +14.40% per year against +25.47% for QQQ; over five years the annualized figures are +11.63% and +14.34% respectively. Across the full 10-year window we track, COWZ has the edge at +13.60% annualized vs +13.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 18.7% for COWZ. 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 -38.6% for COWZ 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
COWZ charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, COWZ currently yields 1.85% against 0.44% for QQQ.
Holdings Overlap
COWZ and QQQ share 19 holdings out of 184 unique holdings combined, representing a 7.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, COWZ or QQQ?
COWZ has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, COWZ or QQQ?
Over the past year COWZ returned +25.55% vs +25.22% for QQQ, so COWZ leads on 1-year performance. Over the longest common window we track (10 years), COWZ annualized +13.60% vs +13.01% for QQQ. Past performance does not guarantee future results.
Which is riskier, COWZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.7% for COWZ. Worst drawdown: COWZ -38.6% vs QQQ -83.0%.
Should I hold both COWZ and QQQ?
COWZ and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between COWZ and QQQ?
COWZ and QQQ share 19 common holdings with a 7.0% weight overlap. Combined, they hold 184 unique securities.
Which pays a higher dividend, COWZ or QQQ?
COWZ yields 1.85% while QQQ yields 0.44%, so COWZ currently pays the higher dividend yield.
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