KCCA vs QQQ
KraneShares California Carbon Allowance Strategy 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 | KCCA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.18% | |
| AUM | $116M | $496.3B | |
| Dividend Yield | 2.89% | 0.44% | |
| Holdings | 4 | 108 | |
| YTD Return | -1.11% | +16.64% | |
| 1Y Return | +10.40% | +27.27% | |
| 3Y Return (annualized) | -6.01% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 20.7% | 30.6% | |
| Max Drawdown | -40.9% | -83.0% | |
| Fund Family | KraneShares | Invesco (US) | |
| Category | Commodity | Equity | |
| Inception | Oct 4, 2021 | Mar 10, 1999 |
KCCA vs QQQ Performance
KraneShares California Carbon Allowance Strategy ETF (KCCA) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KCCA returned +10.40% while QQQ returned +27.27%. Year to date, KCCA is down 1.11% versus a gain of 16.64% for QQQ.
Over three years, KCCA compounded at -6.01% per year against +25.96% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs -2.12%. 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 20.7% for KCCA. 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 -40.9% for KCCA 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 0.15. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KCCA charges 0.95% per year while QQQ charges 0.18%. On a $10,000 position that is $95 vs $18 annually, a gap of $77 per year that compounds over a long holding period. On income, KCCA currently yields 2.89% against 0.44% for QQQ.
Holdings Overlap
KCCA and QQQ share 0 holdings out of 104 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, KCCA or QQQ?
KCCA has an expense ratio of 0.95% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, KCCA or QQQ?
Over the past year KCCA returned +10.40% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), KCCA annualized -2.12% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, KCCA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.7% for KCCA. Worst drawdown: KCCA -40.9% vs QQQ -83.0%.
Should I hold both KCCA and QQQ?
KCCA and QQQ have a monthly-return correlation of 0.15, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KCCA and QQQ?
KCCA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, KCCA or QQQ?
KCCA yields 2.89% while QQQ yields 0.44%, so KCCA currently pays the higher dividend yield.
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