DIVY vs QQQ
Sound Equity Dividend Income 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 103 holdings.
Side-by-Side Comparison
| Metric | DIVY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.45% | 0.18% | |
| AUM | $29M | $455.8B | |
| Dividend Yield | 3.11% | 0.41% | |
| Holdings | 37 | 108 | |
| YTD Return | +19.46% | +19.68% | |
| 1Y Return | +24.38% | +26.75% | |
| 3Y Return (annualized) | +10.35% | +26.25% | |
| 5Y Return (annualized) | +8.37% | +15.39% | |
| Volatility (annualized) | 15.0% | 30.6% | |
| Max Drawdown | -18.3% | -83.0% | |
| Fund Family | Sound Income Strategies | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 30, 2020 | Mar 10, 1999 |
DIVY vs QQQ Performance
Sound Equity Dividend Income ETF (DIVY) is a ETF from Sound Income Strategies and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DIVY returned +24.38% while QQQ returned +26.75%. Year to date, DIVY is up 19.46% versus a gain of 19.68% for QQQ.
Over three years, DIVY compounded at +10.35% per year against +26.25% for QQQ; over five years the annualized figures are +8.37% and +15.39% respectively. Across the full 6-year window we track, QQQ has the edge at +13.15% annualized vs +12.38%. 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 15.0% for DIVY. 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 -18.3% for DIVY 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DIVY 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, DIVY currently yields 3.11% against 0.41% for QQQ.
Holdings Overlap
DIVY and QQQ share 3 holdings out of 136 unique holdings combined, representing a 3.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DIVY or QQQ?
DIVY 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, DIVY or QQQ?
Over the past year DIVY returned +24.38% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), DIVY annualized +12.38% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, DIVY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.0% for DIVY. Worst drawdown: DIVY -18.3% vs QQQ -83.0%.
Should I hold both DIVY and QQQ?
DIVY and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DIVY and QQQ?
DIVY and QQQ share 3 common holdings with a 3.0% weight overlap. Combined, they hold 136 unique securities.
Which pays a higher dividend, DIVY or QQQ?
DIVY yields 3.11% while QQQ yields 0.41%, so DIVY currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.