KWT vs QQQ
iShares MSCI Kuwait 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 | KWT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.74% | 0.18% | |
| AUM | $68M | $496.3B | |
| Dividend Yield | 5.58% | 0.44% | |
| Holdings | 41 | 108 | |
| YTD Return | -2.99% | +16.64% | |
| 1Y Return | -1.99% | +27.27% | |
| 3Y Return (annualized) | +9.76% | +25.96% | |
| 5Y Return (annualized) | +7.48% | +14.54% | |
| Volatility (annualized) | 13.7% | 30.6% | |
| Max Drawdown | -24.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 1, 2020 | Mar 10, 1999 |
KWT vs QQQ Performance
iShares MSCI Kuwait ETF (KWT) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KWT returned -1.99% while QQQ returned +27.27%. Year to date, KWT is down 2.99% versus a gain of 16.64% for QQQ.
Over three years, KWT compounded at +9.76% per year against +25.96% for QQQ; over five years the annualized figures are +7.48% and +14.54% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs +11.69%. 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 13.7% for KWT. 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 -24.4% for KWT 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KWT charges 0.74% per year while QQQ charges 0.18%. On a $10,000 position that is $74 vs $18 annually, a gap of $56 per year that compounds over a long holding period. On income, KWT currently yields 5.58% against 0.44% for QQQ.
Holdings Overlap
KWT and QQQ share 0 holdings out of 138 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, KWT or QQQ?
KWT has an expense ratio of 0.74% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $56 per year of difference.
Which performed better, KWT or QQQ?
Over the past year KWT returned -1.99% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), KWT annualized +11.69% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, KWT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.7% for KWT. Worst drawdown: KWT -24.4% vs QQQ -83.0%.
Should I hold both KWT and QQQ?
KWT and QQQ have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KWT and QQQ?
KWT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 138 unique securities.
Which pays a higher dividend, KWT or QQQ?
KWT yields 5.58% while QQQ yields 0.44%, so KWT currently pays the higher dividend yield.
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