DWM vs QQQ

DWM vs QQQ

Which is better, DWM 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. DWM is less concentrated, with 11.3% of the fund in its ten largest positions against 46.5%.

Lower Fees: QQQHigher Returns: QQQLess Concentrated: DWM

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

MetricDWMQQQ
Expense Ratio0.48%0.18%Best
AUM$689M$483.5B
Dividend Yield2.65%0.44%
Holdings1,426107
YTD Return+9.71%+15.94%Best
1Y Return+14.95%+20.44%Best
3Y Return (annualized)+17.89%+24.86%Best
5Y Return (annualized)+10.06%+14.26%Best
Volatility (annualized)16.9%Best18.6%
Max Drawdown-64.3%-53.5%Best
$10,000 over 5 years$16,149$19,475Best
Top 10 Weight11.3%Best46.5%
Fund FamilyWisdomTree InvestmentsInvesco (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Growth
InceptionJun 16, 2006Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: Jun 16, 2006 to Sep 14, 2026 (20.2 years).

DWM 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

DWM vs QQQ Performance

WisdomTree International Equity Fund (DWM) is an ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year DWM returned +14.95% while QQQ returned +20.44%. Year to date, DWM is up 9.71% versus a gain of 15.94% for QQQ.

Over three years, DWM compounded at +17.89% per year against +24.86% for QQQ; over five years the annualized figures are +10.06% and +14.26% respectively. Across the full 20-year window we track, QQQ has the edge at +15.69% annualized vs +3.05%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 18.6% 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 -53.5% 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 0.72. 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 2.65% against 0.44% for QQQ.

Holdings Overlap

DWM already in QQQ0.3%
QQQ already in DWM0.4%

0.3% of DWM's money is in holdings QQQ also owns. 0.4% of QQQ's money is in holdings DWM also owns.

We cannot see either book well enough to say how much of this pair is duplicated.

2 positions in common, counted across the 1,384 positions we hold weights for in DWM and 102 in QQQ, against full books of 1,426 and 107.

What only one of them owns

Our book lists 96 positions for QQQ that do not appear in our book for DWM (97.5% of the fund), and 28 for DWM that do not appear in QQQ (5.3%).

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.

Top Shared Holdings

StockWeight in DWMWeight in QQQDifference
CCEP:LNCoca-Cola Europacific Partne0.14%0.21%0.07%
FER:ASFerrovial Se0.13%0.21%0.08%

You are not choosing between two funds in isolation.

Whichever of DWM and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

DWMQQQ

Free for up to 10 holdings. No account needed.

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, by $30 a year on a $10,000 investment.

Which performed better, DWM or QQQ?

Over the past year DWM returned +14.95% vs +20.44% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), DWM annualized +3.05% vs +15.69% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, DWM or QQQ?

QQQ has been the more volatile fund at 18.6% annualized versus 16.9% for DWM. Worst drawdown: DWM -64.3% vs QQQ -53.5%.

Should I hold both DWM and QQQ?

DWM and QQQ have a monthly-return correlation of 0.72, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, DWM or QQQ?

DWM yields 2.65% while QQQ yields 0.44%, so DWM currently pays the higher dividend yield.

Is QQQ better than DWM?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. DWM is less concentrated, with 11.3% 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.