QQQ vs QWLD
Invesco QQQ Trust, Series 1 vs State Street SPDR MSCI World StrategicFactors ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QWLD offers more diversification with 1,297 holdings.
Side-by-Side Comparison
| Metric | QQQ | QWLD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.30% | |
| AUM | $496.3B | $179M | |
| Dividend Yield | 0.44% | 1.79% | |
| Holdings | 108 | 1,297 | |
| YTD Return | +16.64% | +11.54% | |
| 1Y Return | +27.27% | +17.93% | |
| 3Y Return (annualized) | +25.96% | +17.67% | |
| 5Y Return (annualized) | +14.54% | +10.09% | |
| Volatility (annualized) | 30.6% | 12.6% | |
| Max Drawdown | -83.0% | -31.9% | |
| Fund Family | Invesco (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 4, 2014 |
QQQ vs QWLD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR MSCI World StrategicFactors ETF (QWLD) is a ETF from SPDR State Street Global Advisors. Over the past year QQQ returned +27.27% while QWLD returned +17.93%. Year to date, QQQ is up 16.64% versus a gain of 11.54% for QWLD.
Over three years, QQQ compounded at +25.96% per year against +17.67% for QWLD; over five years the annualized figures are +14.54% and +10.09% respectively. Across the full 12-year window we track, QQQ has the edge at +13.03% annualized vs +9.20%. 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 12.6% for QWLD. 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 -31.9% for QWLD. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while QWLD charges 0.30%. On a $10,000 position that is $18 vs $30 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.79% for QWLD.
Holdings Overlap
QQQ and QWLD share 92 holdings out of 1238 unique holdings combined, representing a 27.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or QWLD?
QQQ has an expense ratio of 0.18% while QWLD charges 0.30%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or QWLD?
Over the past year QQQ returned +27.27% vs +17.93% for QWLD, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), QQQ annualized +13.03% vs +9.20% for QWLD. Past performance does not guarantee future results.
Which is riskier, QQQ or QWLD?
QQQ has been the more volatile fund at 30.6% annualized versus 12.6% for QWLD. Worst drawdown: QQQ -83.0% vs QWLD -31.9%.
Should I hold both QQQ and QWLD?
QQQ and QWLD have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and QWLD?
QQQ and QWLD share 92 common holdings with a 27.9% weight overlap. Combined, they hold 1238 unique securities.
Which pays a higher dividend, QQQ or QWLD?
QQQ yields 0.44% while QWLD yields 1.79%, so QWLD currently pays the higher dividend yield.
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