DES vs QQQ
WisdomTree US SmallCap Dividend Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. DES delivered stronger 1-year returns. DES offers more diversification with 510 holdings.
Side-by-Side Comparison
| Metric | DES | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $2.2B | $455.8B | |
| Dividend Yield | 2.26% | 0.41% | |
| Holdings | 530 | 108 | |
| YTD Return | +23.69% | +17.46% | |
| 1Y Return | +31.91% | +26.02% | |
| 3Y Return (annualized) | +14.08% | +25.51% | |
| 5Y Return (annualized) | +7.93% | +15.12% | |
| Volatility (annualized) | 20.1% | 30.6% | |
| Max Drawdown | -68.1% | -83.0% | |
| Fund Family | WisdomTree Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Mar 10, 1999 |
DES vs QQQ Performance
WisdomTree US SmallCap Dividend Fund (DES) is a ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DES returned +31.91% while QQQ returned +26.02%. Year to date, DES is up 23.69% versus a gain of 17.46% for QQQ.
Over three years, DES compounded at +14.08% per year against +25.51% for QQQ; over five years the annualized figures are +7.93% and +15.12% respectively. Across the full 20-year window we track, QQQ has the edge at +13.08% annualized vs +5.32%. 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 20.1% for DES. 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 -68.1% for DES 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DES charges 0.38% per year while QQQ charges 0.18%. On a $10,000 position that is $38 vs $18 annually, a gap of $20 per year that compounds over a long holding period. On income, DES currently yields 2.26% against 0.41% for QQQ.
Holdings Overlap
DES and QQQ share 0 holdings out of 613 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, DES or QQQ?
DES has an expense ratio of 0.38% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, DES or QQQ?
Over the past year DES returned +31.91% vs +26.02% for QQQ, so DES leads on 1-year performance. Over the longest common window we track (20 years), DES annualized +5.32% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, DES or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.1% for DES. Worst drawdown: DES -68.1% vs QQQ -83.0%.
Should I hold both DES and QQQ?
DES and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DES and QQQ?
DES and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 613 unique securities.
Which pays a higher dividend, DES or QQQ?
DES yields 2.26% while QQQ yields 0.41%, so DES currently pays the higher dividend yield.
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