QQQ vs QSML
Invesco QQQ Trust, Series 1 vs WisdomTree US SmallCap Quality Growth Fund
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QSML offers more diversification with 387 holdings.
Side-by-Side Comparison
| Metric | QQQ | QSML | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.38% | |
| AUM | $455.8B | $12M | |
| Dividend Yield | 0.41% | 0.54% | |
| Holdings | 108 | 391 | |
| YTD Return | +19.68% | +21.80% | |
| 1Y Return | +26.75% | +26.54% | |
| 3Y Return (annualized) | +26.25% | - | |
| 5Y Return (annualized) | +15.39% | - | |
| Volatility (annualized) | 30.6% | 17.8% | |
| Max Drawdown | -83.0% | -28.3% | |
| Fund Family | Invesco (US) | WisdomTree Investments | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 25, 2024 |
QQQ vs QSML Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and WisdomTree US SmallCap Quality Growth Fund (QSML) is a ETF from WisdomTree Investments. Over the past year QQQ returned +26.75% while QSML returned +26.54%. Year to date, QQQ is up 19.68% versus a gain of 21.80% for QSML.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 17.8% for QSML. 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 -83.0% for QQQ and -28.3% for QSML. 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while QSML charges 0.38%. On a $10,000 position that is $18 vs $38 annually, a gap of $20 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 0.54% for QSML.
Holdings Overlap
QQQ and QSML share 0 holdings out of 490 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, QQQ or QSML?
QQQ has an expense ratio of 0.18% while QSML charges 0.38%. QQQ is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, QQQ or QSML?
Over the past year QQQ returned +26.75% vs +26.54% for QSML, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.15% vs +14.95% for QSML. Past performance does not guarantee future results.
Which is riskier, QQQ or QSML?
QQQ has been the more volatile fund at 30.6% annualized versus 17.8% for QSML. Worst drawdown: QQQ -83.0% vs QSML -28.3%.
Should I hold both QQQ and QSML?
QQQ and QSML have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and QSML?
QQQ and QSML share 0 common holdings with a 0.0% weight overlap. Combined, they hold 490 unique securities.
Which pays a higher dividend, QQQ or QSML?
QQQ yields 0.41% while QSML yields 0.54%, so QSML currently pays the higher dividend yield.
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