CUT vs QQQ
Invesco MSCI Global Timber ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | CUT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.76% | 0.18% | |
| AUM | $33M | $496.3B | |
| Dividend Yield | 2.39% | 0.44% | |
| Holdings | 65 | 108 | |
| YTD Return | +2.31% | +17.07% | |
| 1Y Return | +0.49% | +26.39% | |
| 3Y Return (annualized) | +2.34% | +26.08% | |
| 5Y Return (annualized) | -2.64% | +15.18% | |
| Volatility (annualized) | 22.9% | 30.6% | |
| Max Drawdown | -70.0% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 9, 2007 | Mar 10, 1999 |
CUT vs QQQ Performance
Invesco MSCI Global Timber ETF (CUT) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CUT returned +0.49% while QQQ returned +26.39%. Year to date, CUT is up 2.31% versus a gain of 17.07% for QQQ.
Over three years, CUT compounded at +2.34% per year against +26.08% for QQQ; over five years the annualized figures are -2.64% and +15.18% respectively. Across the full 19-year window we track, QQQ has the edge at +13.05% annualized vs +3.01%. 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 22.9% for CUT. 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 -70.0% for CUT 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CUT charges 0.76% per year while QQQ charges 0.18%. On a $10,000 position that is $76 vs $18 annually, a gap of $58 per year that compounds over a long holding period. On income, CUT currently yields 2.39% against 0.44% for QQQ.
Holdings Overlap
CUT and QQQ share 0 holdings out of 154 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, CUT or QQQ?
CUT has an expense ratio of 0.76% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $58 per year of difference.
Which performed better, CUT or QQQ?
Over the past year CUT returned +0.49% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), CUT annualized +3.01% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, CUT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.9% for CUT. Worst drawdown: CUT -70.0% vs QQQ -83.0%.
Should I hold both CUT and QQQ?
CUT and QQQ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CUT and QQQ?
CUT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 154 unique securities.
Which pays a higher dividend, CUT or QQQ?
CUT yields 2.39% while QQQ yields 0.44%, so CUT currently pays the higher dividend yield.
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