KBWD vs QQQ
Invesco KBW High Dividend Yield Financial ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | KBWD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 5.39% | 0.18% | |
| AUM | $425M | $496.3B | |
| Dividend Yield | 14.38% | 0.44% | |
| Holdings | 41 | 108 | |
| YTD Return | -1.48% | +16.64% | |
| 1Y Return | +3.22% | +27.27% | |
| 3Y Return (annualized) | +5.98% | +25.96% | |
| 5Y Return (annualized) | +1.66% | +14.54% | |
| Volatility (annualized) | 21.0% | 30.6% | |
| Max Drawdown | -65.2% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 2, 2010 | Mar 10, 1999 |
KBWD vs QQQ Performance
Invesco KBW High Dividend Yield Financial ETF (KBWD) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KBWD returned +3.22% while QQQ returned +27.27%. Year to date, KBWD is down 1.48% versus a gain of 16.64% for QQQ.
Over three years, KBWD compounded at +5.98% per year against +25.96% for QQQ; over five years the annualized figures are +1.66% and +14.54% respectively. Across the full 16-year window we track, QQQ has the edge at +13.03% annualized vs -0.19%. 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 21.0% for KBWD. 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 -65.2% for KBWD 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KBWD charges 5.39% per year while QQQ charges 0.18%. On a $10,000 position that is $539 vs $18 annually, a gap of $521 per year that compounds over a long holding period. On income, KBWD currently yields 14.38% against 0.44% for QQQ.
Holdings Overlap
KBWD and QQQ share 0 holdings out of 141 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, KBWD or QQQ?
KBWD has an expense ratio of 5.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $521 per year of difference.
Which performed better, KBWD or QQQ?
Over the past year KBWD returned +3.22% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), KBWD annualized -0.19% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, KBWD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.0% for KBWD. Worst drawdown: KBWD -65.2% vs QQQ -83.0%.
Should I hold both KBWD and QQQ?
KBWD and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KBWD and QQQ?
KBWD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 141 unique securities.
Which pays a higher dividend, KBWD or QQQ?
KBWD yields 14.38% while QQQ yields 0.44%, so KBWD currently pays the higher dividend yield.
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