DEMZ vs QQQ
Democratic Large Cap Core 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 | DEMZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.18% | |
| AUM | $68M | $496.3B | |
| Dividend Yield | 0.89% | 0.44% | |
| Holdings | 44 | 108 | |
| YTD Return | +11.86% | +16.64% | |
| 1Y Return | +20.98% | +27.27% | |
| 3Y Return (annualized) | +22.18% | +25.96% | |
| 5Y Return (annualized) | +12.25% | +14.54% | |
| Volatility (annualized) | 16.2% | 30.6% | |
| Max Drawdown | -27.2% | -83.0% | |
| Fund Family | DEMZ | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 2, 2020 | Mar 10, 1999 |
DEMZ vs QQQ Performance
Democratic Large Cap Core ETF (DEMZ) is a ETF from DEMZ and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DEMZ returned +20.98% while QQQ returned +27.27%. Year to date, DEMZ is up 11.86% versus a gain of 16.64% for QQQ.
Over three years, DEMZ compounded at +22.18% per year against +25.96% for QQQ; over five years the annualized figures are +12.25% and +14.54% respectively. Across the full 6-year window we track, DEMZ has the edge at +16.71% annualized vs +13.03%. 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 16.2% for DEMZ. 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 -27.2% for DEMZ 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DEMZ 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, DEMZ currently yields 0.89% against 0.44% for QQQ.
Holdings Overlap
DEMZ and QQQ share 17 holdings out of 127 unique holdings combined, representing a 32.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DEMZ or QQQ?
DEMZ 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, DEMZ or QQQ?
Over the past year DEMZ returned +20.98% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), DEMZ annualized +16.71% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, DEMZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.2% for DEMZ. Worst drawdown: DEMZ -27.2% vs QQQ -83.0%.
Should I hold both DEMZ and QQQ?
DEMZ and QQQ have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DEMZ and QQQ?
DEMZ and QQQ share 17 common holdings with a 32.9% weight overlap. Combined, they hold 127 unique securities.
Which pays a higher dividend, DEMZ or QQQ?
DEMZ yields 0.89% while QQQ yields 0.44%, so DEMZ currently pays the higher dividend yield.
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