HCOM vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricHCOMQQQWinner
Expense Ratio0.59%0.18%
AUM$9M$455.8B
Dividend Yield10.95%0.41%
Holdings55108
YTD Return+0.71%+17.85%
1Y Return-4.90%+26.45%
3Y Return (annualized)-6.95%+26.07%
5Y Return (annualized)-+15.16%
Volatility (annualized)14.7%30.6%
Max Drawdown-28.8%-83.0%
Fund FamilyHartford FundsInvesco (US)
CategoryCommodityEquity
InceptionSep 14, 2021Mar 10, 1999

HCOM vs QQQ Performance

Hartford Schroders Commodity Strategy ETF (HCOM) is a ETF from Hartford Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HCOM returned -4.90% while QQQ returned +26.45%. Year to date, HCOM is up 0.71% versus a gain of 17.85% for QQQ.

Over three years, HCOM compounded at -6.95% per year against +26.07% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.09% annualized vs +0.68%. 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 14.7% for HCOM. 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 -28.8% for HCOM 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 0.05. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HCOM charges 0.59% per year while QQQ charges 0.18%. On a $10,000 position that is $59 vs $18 annually, a gap of $41 per year that compounds over a long holding period. On income, HCOM currently yields 10.95% against 0.41% for QQQ.

Frequently Asked Questions

Which is cheaper, HCOM or QQQ?

HCOM has an expense ratio of 0.59% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $41 per year of difference.

Which performed better, HCOM or QQQ?

Over the past year HCOM returned -4.90% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), HCOM annualized +0.68% vs +13.09% for QQQ. Past performance does not guarantee future results.

Which is riskier, HCOM or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 14.7% for HCOM. Worst drawdown: HCOM -28.8% vs QQQ -83.0%.

Should I hold both HCOM and QQQ?

HCOM and QQQ have a monthly-return correlation of 0.05, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, HCOM or QQQ?

HCOM yields 10.95% while QQQ yields 0.41%, so HCOM currently pays the higher dividend yield.

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