ICOW vs QQQ
Pacer Developed Markets International Cash Cows 100 ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. ICOW delivered stronger 1-year returns. ICOW offers more diversification with 111 holdings.
Side-by-Side Comparison
| Metric | ICOW | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.18% | |
| AUM | $1.8B | $496.3B | |
| Dividend Yield | 2.23% | 0.44% | |
| Holdings | 111 | 108 | |
| YTD Return | +17.03% | +16.64% | |
| 1Y Return | +29.09% | +27.27% | |
| 3Y Return (annualized) | +18.46% | +25.96% | |
| 5Y Return (annualized) | +11.02% | +14.54% | |
| Volatility (annualized) | 18.0% | 30.6% | |
| Max Drawdown | -43.5% | -83.0% | |
| Fund Family | Pacer ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2017 | Mar 10, 1999 |
ICOW vs QQQ Performance
Pacer Developed Markets International Cash Cows 100 ETF (ICOW) is a ETF from Pacer ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ICOW returned +29.09% while QQQ returned +27.27%. Year to date, ICOW is up 17.03% versus a gain of 16.64% for QQQ.
Over three years, ICOW compounded at +18.46% per year against +25.96% for QQQ; over five years the annualized figures are +11.02% and +14.54% respectively. Across the full 9-year window we track, QQQ has the edge at +13.03% annualized vs +9.82%. 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 18.0% for ICOW. 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 -43.5% for ICOW 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ICOW 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, ICOW currently yields 2.23% against 0.44% for QQQ.
Holdings Overlap
ICOW and QQQ share 0 holdings out of 204 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, ICOW or QQQ?
ICOW has an expense ratio of 0.65% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, ICOW or QQQ?
Over the past year ICOW returned +29.09% vs +27.27% for QQQ, so ICOW leads on 1-year performance. Over the longest common window we track (9 years), ICOW annualized +9.82% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, ICOW or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.0% for ICOW. Worst drawdown: ICOW -43.5% vs QQQ -83.0%.
Should I hold both ICOW and QQQ?
ICOW and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ICOW and QQQ?
ICOW and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 204 unique securities.
Which pays a higher dividend, ICOW or QQQ?
ICOW yields 2.23% while QQQ yields 0.44%, so ICOW currently pays the higher dividend yield.
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