IHDG vs QQQ
WisdomTree International Hedged Quality Dividend Growth Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IHDG offers more diversification with 271 holdings.
Side-by-Side Comparison
| Metric | IHDG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.18% | |
| AUM | $2.2B | $496.3B | |
| Dividend Yield | 1.80% | 0.44% | |
| Holdings | 271 | 108 | |
| YTD Return | +9.80% | +16.64% | |
| 1Y Return | +20.03% | +27.27% | |
| 3Y Return (annualized) | +13.14% | +25.96% | |
| 5Y Return (annualized) | +7.75% | +14.54% | |
| Volatility (annualized) | 12.6% | 30.6% | |
| Max Drawdown | -29.2% | -83.0% | |
| Fund Family | WisdomTree Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 7, 2014 | Mar 10, 1999 |
IHDG vs QQQ Performance
WisdomTree International Hedged Quality Dividend Growth Fund (IHDG) is a ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IHDG returned +20.03% while QQQ returned +27.27%. Year to date, IHDG is up 9.80% versus a gain of 16.64% for QQQ.
Over three years, IHDG compounded at +13.14% per year against +25.96% for QQQ; over five years the annualized figures are +7.75% and +14.54% respectively. Across the full 12-year window we track, QQQ has the edge at +13.03% annualized vs +8.34%. 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 12.6% for IHDG. 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 -29.2% for IHDG 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IHDG charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, IHDG currently yields 1.80% against 0.44% for QQQ.
Holdings Overlap
IHDG and QQQ share 1 holdings out of 367 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IHDG | Weight in QQQ | Difference |
|---|---|---|---|
| FER:AS | 0.41% | 0.21% | 0.20% |
Frequently Asked Questions
Which is cheaper, IHDG or QQQ?
IHDG has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, IHDG or QQQ?
Over the past year IHDG returned +20.03% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), IHDG annualized +8.34% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IHDG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.6% for IHDG. Worst drawdown: IHDG -29.2% vs QQQ -83.0%.
Should I hold both IHDG and QQQ?
IHDG and QQQ have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IHDG and QQQ?
IHDG and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 367 unique securities.
Which pays a higher dividend, IHDG or QQQ?
IHDG yields 1.80% while QQQ yields 0.44%, so IHDG currently pays the higher dividend yield.
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