LCOW vs QQQ
Pacer S&P 500 Quality FCF Aristocrats 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 | LCOW | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.18% | |
| AUM | $27M | $496.3B | |
| Dividend Yield | 0.62% | 0.44% | |
| Holdings | 103 | 108 | |
| YTD Return | +11.36% | +16.64% | |
| 1Y Return | +18.64% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 11.1% | 30.6% | |
| Max Drawdown | -10.6% | -83.0% | |
| Fund Family | Pacer ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 6, 2025 | Mar 10, 1999 |
LCOW vs QQQ Performance
Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) is a ETF from Pacer ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LCOW returned +18.64% while QQQ returned +27.27%. Year to date, LCOW is up 11.36% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 11.1% for LCOW. 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 -10.6% for LCOW 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LCOW charges 0.49% per year while QQQ charges 0.18%. On a $10,000 position that is $49 vs $18 annually, a gap of $31 per year that compounds over a long holding period. On income, LCOW currently yields 0.62% against 0.44% for QQQ.
Holdings Overlap
LCOW and QQQ share 35 holdings out of 169 unique holdings combined, representing a 41.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LCOW or QQQ?
LCOW has an expense ratio of 0.49% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, LCOW or QQQ?
Over the past year LCOW returned +18.64% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), LCOW annualized +24.94% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, LCOW or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.1% for LCOW. Worst drawdown: LCOW -10.6% vs QQQ -83.0%.
Should I hold both LCOW and QQQ?
LCOW and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LCOW and QQQ?
LCOW and QQQ share 35 common holdings with a 41.2% weight overlap. Combined, they hold 169 unique securities.
Which pays a higher dividend, LCOW or QQQ?
LCOW yields 0.62% while QQQ yields 0.44%, so LCOW currently pays the higher dividend yield.
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