CRED vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricCREDQQQWinner
Expense Ratio0.33%0.18%
AUM$3M$455.8B
Dividend Yield4.61%0.41%
Holdings67108
YTD Return-0.40%+19.68%
1Y Return-6.09%+26.75%
3Y Return (annualized)+2.35%+26.25%
5Y Return (annualized)-+15.39%
Volatility (annualized)18.0%30.6%
Max Drawdown-17.6%-83.0%
Fund FamilyColumbia Threadneedle InvestmentsInvesco (US)
CategoryEquityEquity
InceptionApr 26, 2023Mar 10, 1999

CRED vs QQQ Performance

Columbia Research Enhanced Real Estate ETF (CRED) is a ETF from Columbia Threadneedle Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CRED returned -6.09% while QQQ returned +26.75%. Year to date, CRED is down 0.40% versus a gain of 19.68% for QQQ.

Over three years, CRED compounded at +2.35% per year against +26.25% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.15% annualized vs +4.25%. 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 18.0% for CRED. 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 -17.6% for CRED 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CRED charges 0.33% per year while QQQ charges 0.18%. On a $10,000 position that is $33 vs $18 annually, a gap of $15 per year that compounds over a long holding period. On income, CRED currently yields 4.61% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

CRED and QQQ share 0 holdings out of 169 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, CRED or QQQ?

CRED has an expense ratio of 0.33% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $15 per year of difference.

Which performed better, CRED or QQQ?

Over the past year CRED returned -6.09% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), CRED annualized +4.25% vs +13.15% for QQQ. Past performance does not guarantee future results.

Which is riskier, CRED or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 18.0% for CRED. Worst drawdown: CRED -17.6% vs QQQ -83.0%.

Should I hold both CRED and QQQ?

CRED and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CRED and QQQ?

CRED and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 169 unique securities.

Which pays a higher dividend, CRED or QQQ?

CRED yields 4.61% while QQQ yields 0.41%, so CRED currently pays the higher dividend yield.

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