DWM vs QQQ

DWM vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DWM offers more diversification with 1,426 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: DWM

Side-by-Side Comparison

MetricDWMQQQWinner
Expense Ratio0.48%0.18%
AUM$693M$496.3B
Dividend Yield2.69%0.44%
Holdings1,426108
YTD Return+12.36%+16.64%
1Y Return+19.46%+27.27%
3Y Return (annualized)+19.90%+25.96%
5Y Return (annualized)+10.79%+14.54%
Volatility (annualized)16.9%30.6%
Max Drawdown-64.3%-83.0%
Fund FamilyWisdomTree InvestmentsInvesco (US)
CategoryEquityEquity
InceptionJun 16, 2006Mar 10, 1999

DWM vs QQQ Performance

WisdomTree International Equity Fund (DWM) is a ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DWM returned +19.46% while QQQ returned +27.27%. Year to date, DWM is up 12.36% versus a gain of 16.64% for QQQ.

Over three years, DWM compounded at +19.90% per year against +25.96% for QQQ; over five years the annualized figures are +10.79% and +14.54% respectively. Across the full 20-year window we track, QQQ has the edge at +13.03% annualized vs +3.18%. 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 16.9% for DWM. 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 -64.3% for DWM 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 0.72. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DWM charges 0.48% per year while QQQ charges 0.18%. On a $10,000 position that is $48 vs $18 annually, a gap of $30 per year that compounds over a long holding period. On income, DWM currently yields 2.69% against 0.44% for QQQ.

Holdings Overlap

0.3%overlap

DWM and QQQ share 2 holdings out of 1314 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in DWMWeight in QQQDifference
FER:AS0.14%0.21%0.07%
CCEP:LN0.13%0.21%0.08%

Frequently Asked Questions

Which is cheaper, DWM or QQQ?

DWM has an expense ratio of 0.48% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $30 per year of difference.

Which performed better, DWM or QQQ?

Over the past year DWM returned +19.46% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), DWM annualized +3.18% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, DWM or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 16.9% for DWM. Worst drawdown: DWM -64.3% vs QQQ -83.0%.

Should I hold both DWM and QQQ?

DWM and QQQ have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DWM and QQQ?

DWM and QQQ share 2 common holdings with a 0.3% weight overlap. Combined, they hold 1314 unique securities.

Which pays a higher dividend, DWM or QQQ?

DWM yields 2.69% while QQQ yields 0.44%, so DWM currently pays the higher dividend yield.

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