LCDS vs QQQ

LCDS vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. LCDS offers more diversification with 115 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: LCDS

Side-by-Side Comparison

MetricLCDSQQQWinner
Expense Ratio0.30%0.18%
AUM$17M$496.3B
Dividend Yield0.86%0.44%
Holdings115108
YTD Return+12.50%+16.23%
1Y Return+21.48%+26.23%
3Y Return (annualized)-+25.75%
5Y Return (annualized)-+14.78%
Volatility (annualized)12.3%30.6%
Max Drawdown-18.4%-83.0%
Fund FamilyJ.P. Morgan Asset ManagementInvesco (US)
CategoryEquityEquity
InceptionAug 7, 2024Mar 10, 1999

LCDS vs QQQ Performance

JPMorgan Fundamental Data Science Large Core ETF (LCDS) is a ETF from J.P. Morgan Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LCDS returned +21.48% while QQQ returned +26.23%. Year to date, LCDS is up 12.50% versus a gain of 16.23% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.3% for LCDS. 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 -18.4% for LCDS 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 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

LCDS charges 0.30% per year while QQQ charges 0.18%. On a $10,000 position that is $30 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, LCDS currently yields 0.86% against 0.44% for QQQ.

Holdings Overlap

47.8%overlap

LCDS and QQQ share 34 holdings out of 181 unique holdings combined, representing a 47.8% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in LCDSWeight in QQQDifference
NVDA8.91%8.44%0.47%
AAPL6.91%7.27%0.36%
MSFT6.34%5.76%0.58%
AMZNProProPro
GOOGLProProPro
MUProProPro
AVGOProProPro
METAProProPro
AMDProProPro
TSLAProProPro
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Frequently Asked Questions

Which is cheaper, LCDS or QQQ?

LCDS has an expense ratio of 0.30% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.

Which performed better, LCDS or QQQ?

Over the past year LCDS returned +21.48% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), LCDS annualized +20.63% vs +13.02% for QQQ. Past performance does not guarantee future results.

Which is riskier, LCDS or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 12.3% for LCDS. Worst drawdown: LCDS -18.4% vs QQQ -83.0%.

Should I hold both LCDS and QQQ?

LCDS and QQQ have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LCDS and QQQ?

LCDS and QQQ share 34 common holdings with a 47.8% weight overlap. Combined, they hold 181 unique securities.

Which pays a higher dividend, LCDS or QQQ?

LCDS yields 0.86% while QQQ yields 0.44%, so LCDS currently pays the higher dividend yield.

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