DIVY vs QQQ
Sound Equity Dividend Income ETF vs Invesco QQQ Trust, Series 1
Which is better, DIVY or QQQ?
Large Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. DIVY is less concentrated, with 37.2% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | DIVY | QQQ |
|---|---|---|
| Expense Ratio | 0.45% | 0.18%Best |
| AUM | $30M | $486.1B |
| Dividend Yield | 3.05% | 0.44% |
| Holdings | 37 | 107 |
| YTD Return | +19.45%Best | +17.54% |
| 1Y Return | +22.85% | +25.59%Best |
| 3Y Return (annualized) | +11.02% | +24.63%Best |
| 5Y Return (annualized) | +8.79% | +14.18%Best |
| Volatility (annualized) | 14.9%Best | 19.9% |
| Max Drawdown | -18.3%Best | -35.1% |
| $10,000 over 5 years | $15,239 | $19,407Best |
| Top 10 Weight | 37.2%Best | 46.5% |
| Fund Family | Sound Income Strategies | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Dec 30, 2020 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Dec 31, 2020 to Sep 4, 2026 (5.7 years).
DIVY vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.7 years both funds cover.
DIVY vs QQQ Performance
Sound Equity Dividend Income ETF (DIVY) is an ETF from Sound Income Strategies and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DIVY returned +22.85% while QQQ returned +25.59%. Year to date, DIVY is up 19.45% versus a gain of 17.54% for QQQ.
Over three years, DIVY compounded at +11.02% per year against +24.63% for QQQ; over five years the annualized figures are +8.79% and +14.18% respectively. Across the full 6-year window we track, QQQ has the edge at +16.39% annualized vs +12.24%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.9% compared with 14.9% 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 -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.41. They move together some of the time, and apart the rest.
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 3.05% against 0.44% for QQQ.
Holdings Overlap
7.5% of DIVY's money is in holdings QQQ also owns. 3.1% of QQQ's money is in holdings DIVY also owns.
DIVY and QQQ share little of their money.
3 positions in common, counted across the 36 positions we hold weights for in DIVY and 102 in QQQ, against full books of 37 and 107.
What only one of them owns
Our book lists 93 positions for QQQ that do not appear in our book for DIVY (94.5% of the fund), and 30 for DIVY that do not appear in QQQ (83.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of DIVY and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $27 a year on a $10,000 investment.
Which performed better, DIVY or QQQ?
Over the past year DIVY returned +22.85% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), DIVY annualized +12.24% vs +16.39% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, DIVY or QQQ?
QQQ has been the more volatile fund at 19.9% annualized versus 14.9% for DIVY. Worst drawdown: DIVY -18.3% vs QQQ -35.1%.
Should I hold both DIVY and QQQ?
DIVY and QQQ have a monthly-return correlation of 0.41, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between DIVY and QQQ?
7.5% of DIVY's money is in holdings QQQ also owns. 3.1% of QQQ's is in holdings DIVY also owns. They hold 3 positions in common, counted across the 36 positions we hold weights for in DIVY and 102 in QQQ.
Which pays a higher dividend, DIVY or QQQ?
DIVY yields 3.05% while QQQ yields 0.44%, so DIVY currently pays the higher dividend yield.
Is QQQ better than DIVY?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. DIVY is less concentrated, with 37.2% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.