GYLD vs QQQ

GYLD vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. GYLD offers more diversification with 155 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: GYLD

Side-by-Side Comparison

MetricGYLDQQQWinner
Expense Ratio0.75%0.18%
AUM$37M$496.3B
Dividend Yield7.30%0.44%
Holdings155108
YTD Return+11.90%+16.64%
1Y Return+18.21%+27.27%
3Y Return (annualized)+14.30%+25.96%
5Y Return (annualized)+7.97%+14.54%
Volatility (annualized)16.4%30.6%
Max Drawdown-70.0%-83.0%
Fund FamilyArrow Investment TrustInvesco (US)
CategoryAllocation/BalancedEquity
InceptionMay 8, 2012Mar 10, 1999

GYLD vs QQQ Performance

Arrow Dow Jones Global Yield ETF (GYLD) is a ETF from Arrow Investment Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GYLD returned +18.21% while QQQ returned +27.27%. Year to date, GYLD is up 11.90% versus a gain of 16.64% for QQQ.

Over three years, GYLD compounded at +14.30% per year against +25.96% for QQQ; over five years the annualized figures are +7.97% and +14.54% respectively. Across the full 14-year window we track, QQQ has the edge at +13.03% annualized vs -0.86%. 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 16.4% for GYLD. 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 -70.0% for GYLD 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GYLD charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, GYLD currently yields 7.30% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

GYLD and QQQ share 0 holdings out of 220 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, GYLD or QQQ?

GYLD has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.

Which performed better, GYLD or QQQ?

Over the past year GYLD returned +18.21% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), GYLD annualized -0.86% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, GYLD or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 16.4% for GYLD. Worst drawdown: GYLD -70.0% vs QQQ -83.0%.

Should I hold both GYLD and QQQ?

GYLD and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GYLD and QQQ?

GYLD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 220 unique securities.

Which pays a higher dividend, GYLD or QQQ?

GYLD yields 7.30% while QQQ yields 0.44%, so GYLD currently pays the higher dividend yield.

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