DON vs QQQ
WisdomTree US MidCap Dividend Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DON offers more diversification with 286 holdings.
Side-by-Side Comparison
| Metric | DON | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.18% | |
| AUM | $4.0B | $455.8B | |
| Dividend Yield | 2.26% | 0.41% | |
| Holdings | 293 | 108 | |
| YTD Return | +13.48% | +18.31% | |
| 1Y Return | +16.16% | +25.37% | |
| 3Y Return (annualized) | +13.12% | +25.79% | |
| 5Y Return (annualized) | +9.03% | +15.20% | |
| Volatility (annualized) | 18.1% | 30.6% | |
| Max Drawdown | -64.4% | -83.0% | |
| Fund Family | WisdomTree Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2006 | Mar 10, 1999 |
DON vs QQQ Performance
WisdomTree US MidCap Dividend Fund (DON) is a ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DON returned +16.16% while QQQ returned +25.37%. Year to date, DON is up 13.48% versus a gain of 18.31% for QQQ.
Over three years, DON compounded at +13.12% per year against +25.79% for QQQ; over five years the annualized figures are +9.03% and +15.20% respectively. Across the full 20-year window we track, QQQ has the edge at +13.10% annualized vs +7.11%. 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 18.1% for DON. 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 -64.4% for DON 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
DON 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, DON currently yields 2.26% against 0.41% for QQQ.
Holdings Overlap
DON and QQQ share 0 holdings out of 389 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, DON or QQQ?
DON 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, DON or QQQ?
Over the past year DON returned +16.16% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), DON annualized +7.11% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, DON or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.1% for DON. Worst drawdown: DON -64.4% vs QQQ -83.0%.
Should I hold both DON and QQQ?
DON and QQQ have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DON and QQQ?
DON and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 389 unique securities.
Which pays a higher dividend, DON or QQQ?
DON yields 2.26% while QQQ yields 0.41%, so DON currently pays the higher dividend yield.
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