LGH vs QQQ
HCM Defender 500 Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. LGH offers more diversification with 417 holdings.
Side-by-Side Comparison
| Metric | LGH | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.00% | 0.18% | |
| AUM | $607M | $496.3B | |
| Dividend Yield | 0.37% | 0.44% | |
| Holdings | 417 | 108 | |
| YTD Return | +6.28% | +16.64% | |
| 1Y Return | +17.28% | +27.27% | |
| 3Y Return (annualized) | +20.14% | +25.96% | |
| 5Y Return (annualized) | +9.72% | +14.54% | |
| Volatility (annualized) | 18.5% | 30.6% | |
| Max Drawdown | -29.6% | -83.0% | |
| Fund Family | Howard Capital Management | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Oct 9, 2019 | Mar 10, 1999 |
LGH vs QQQ Performance
HCM Defender 500 Index ETF (LGH) is a ETF from Howard Capital Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LGH returned +17.28% while QQQ returned +27.27%. Year to date, LGH is up 6.28% versus a gain of 16.64% for QQQ.
Over three years, LGH compounded at +20.14% per year against +25.96% for QQQ; over five years the annualized figures are +9.72% and +14.54% respectively. Across the full 7-year window we track, LGH has the edge at +15.45% annualized vs +13.03%. 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 18.5% for LGH. 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 -29.6% for LGH 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
LGH charges 1.00% per year while QQQ charges 0.18%. On a $10,000 position that is $100 vs $18 annually, a gap of $82 per year that compounds over a long holding period. On income, LGH currently yields 0.37% against 0.44% for QQQ.
Holdings Overlap
LGH and QQQ share 91 holdings out of 429 unique holdings combined, representing a 46.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LGH or QQQ?
LGH has an expense ratio of 1.00% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, LGH or QQQ?
Over the past year LGH returned +17.28% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), LGH annualized +15.45% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, LGH or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.5% for LGH. Worst drawdown: LGH -29.6% vs QQQ -83.0%.
Should I hold both LGH and QQQ?
LGH and QQQ have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LGH and QQQ?
LGH and QQQ share 91 common holdings with a 46.1% weight overlap. Combined, they hold 429 unique securities.
Which pays a higher dividend, LGH or QQQ?
LGH yields 0.37% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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