HWSM vs QQQ
Hotchkis & Wiley SMID Cap Diversified Value Fund ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HWSM offers more diversification with 166 holdings.
Side-by-Side Comparison
| Metric | HWSM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.18% | |
| AUM | $3M | $496.3B | |
| Dividend Yield | 1.15% | 0.44% | |
| Holdings | 166 | 108 | |
| YTD Return | +16.05% | +16.19% | |
| 1Y Return | +19.58% | +25.22% | |
| 3Y Return (annualized) | - | +25.47% | |
| 5Y Return (annualized) | - | +14.34% | |
| Volatility (annualized) | 12.0% | 30.6% | |
| Max Drawdown | -15.7% | -83.0% | |
| Fund Family | Hotchkis & Wiley Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 31, 2025 | Mar 10, 1999 |
HWSM vs QQQ Performance
Hotchkis & Wiley SMID Cap Diversified Value Fund ETF (HWSM) is a ETF from Hotchkis & Wiley Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HWSM returned +19.58% while QQQ returned +25.22%. Year to date, HWSM is up 16.05% versus a gain of 16.19% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.0% for HWSM. 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 -15.7% for HWSM 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HWSM charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, HWSM currently yields 1.15% against 0.44% for QQQ.
Holdings Overlap
HWSM and QQQ share 4 holdings out of 263 unique holdings combined, representing a 0.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HWSM or QQQ?
HWSM has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, HWSM or QQQ?
Over the past year HWSM returned +19.58% vs +25.22% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), HWSM annualized +21.08% vs +13.01% for QQQ. Past performance does not guarantee future results.
Which is riskier, HWSM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.0% for HWSM. Worst drawdown: HWSM -15.7% vs QQQ -83.0%.
Should I hold both HWSM and QQQ?
HWSM and QQQ have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HWSM and QQQ?
HWSM and QQQ share 4 common holdings with a 0.6% weight overlap. Combined, they hold 263 unique securities.
Which pays a higher dividend, HWSM or QQQ?
HWSM yields 1.15% while QQQ yields 0.44%, so HWSM currently pays the higher dividend yield.
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