HCOW vs QQQ
Amplify COWS Covered Call ETF vs Invesco QQQ Trust, Series 1
Which is better, HCOW or QQQ?
Large Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. HCOW is less concentrated, with 32.5% of the fund in its ten largest positions against 46.5%.
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
| Metric | HCOW | QQQ |
|---|---|---|
| Expense Ratio | 0.65% | 0.18%Best |
| AUM | $18M | $483.5B |
| Dividend Yield | 12.01% | 0.44% |
| Holdings | 175 | 107 |
| YTD Return | +8.71% | +17.21%Best |
| 1Y Return | +13.25% | +22.10%Best |
| 3Y Return (annualized) | +10.31% | +25.27%Best |
| 5Y Return (annualized) | - | +14.60% |
| Volatility (annualized) | 14.8%Best | 17.3% |
| Max Drawdown | -24.1% | -22.8%Best |
| $10,000 over 3 years | $13,423 | $20,018Best |
| Top 10 Weight | 32.5%Best | 46.5% |
| Fund Family | Amplify ETFs | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Sep 20, 2023 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 20, 2023 to Sep 17, 2026 (3 years).
HCOW 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 covers the 3 years both funds cover.
HCOW vs QQQ Performance
Amplify COWS Covered Call ETF (HCOW) is an ETF from Amplify ETFs and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year HCOW returned +13.25% while QQQ returned +22.10%. Year to date, HCOW is up 8.71% versus a gain of 17.21% for QQQ.
Over three years, HCOW compounded at +10.31% per year against +25.27% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 14.8% for HCOW. 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 -24.1% for HCOW and -22.8% 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 0.35. They move together some of the time, and apart the rest.
Fees and Cost Over Time
HCOW charges 0.65% per year while QQQ charges 0.18%. On a $10,000 position that is $65 vs $18 annually, a gap of $47 per year that compounds over a long holding period. On income, HCOW currently yields 12.01% against 0.44% for QQQ.
Holdings Overlap
12.0% of HCOW's money is in holdings QQQ also owns. 2.1% of QQQ's money is in holdings HCOW also owns.
HCOW and QQQ share little of their money.
4 positions in common, counted across the 42 positions we hold weights for in HCOW and 102 in QQQ, against full books of 175 and 107.
What only one of them owns
Our book lists 92 positions for QQQ that do not appear in our book for HCOW (95.5% of the fund), and 38 for HCOW that do not appear in QQQ (88.5%).
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.
You are not choosing between two funds in isolation.
Whichever of HCOW and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HCOW or QQQ?
HCOW has an expense ratio of 0.65% while QQQ charges 0.18%. QQQ is the cheaper option, by $47 a year on a $10,000 investment.
Which performed better, HCOW or QQQ?
Over the past year HCOW returned +13.25% vs +22.10% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HCOW or QQQ?
QQQ has been the more volatile fund at 17.3% annualized versus 14.8% for HCOW. Worst drawdown: HCOW -24.1% vs QQQ -22.8%.
Should I hold both HCOW and QQQ?
HCOW and QQQ have a monthly-return correlation of 0.35, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between HCOW and QQQ?
12.0% of HCOW's money is in holdings QQQ also owns. 2.1% of QQQ's is in holdings HCOW also owns. They hold 4 positions in common, counted across the 42 positions we hold weights for in HCOW and 102 in QQQ.
Which pays a higher dividend, HCOW or QQQ?
HCOW yields 12.01% while QQQ yields 0.44%, so HCOW currently pays the higher dividend yield.
Is QQQ better than HCOW?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. HCOW is less concentrated, with 32.5% 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.