QQQ vs SCD
Invesco QQQ Trust, Series 1 vs LMP Capital and Income Fund Inc.
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. SCD offers more diversification with 139 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 2.67% | |
| AUM | $455.8B | $397M | |
| Dividend Yield | 0.41% | 8.33% | |
| Holdings | 108 | 158 | |
| YTD Return | +17.46% | +11.01% | |
| 1Y Return | +26.02% | +13.71% | |
| 3Y Return (annualized) | +25.51% | +17.64% | |
| 5Y Return (annualized) | +15.12% | +11.14% | |
| Volatility (annualized) | 30.6% | 20.9% | |
| Max Drawdown | -83.0% | -71.3% | |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Allocation/Balanced | |
| Inception | Mar 10, 1999 | Feb 24, 2004 |
QQQ vs SCD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and LMP Capital and Income Fund Inc. (SCD) is a ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +26.02% while SCD returned +13.71%. Year to date, QQQ is up 17.46% versus a gain of 11.01% for SCD.
Over three years, QQQ compounded at +25.51% per year against +17.64% for SCD; over five years the annualized figures are +15.12% and +11.14% respectively. Across the full 23-year window we track, QQQ has the edge at +13.08% annualized vs +1.19%. 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 20.9% for SCD. 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 -71.3% for SCD. 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCD charges 2.67%. On a $10,000 position that is $18 vs $267 annually, a gap of $249 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 8.33% for SCD.
Holdings Overlap
QQQ and SCD share 11 holdings out of 231 unique holdings combined, representing a 17.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or SCD?
QQQ has an expense ratio of 0.18% while SCD charges 2.67%. QQQ is the cheaper option. On a $10,000 investment, that is $249 per year of difference.
Which performed better, QQQ or SCD?
Over the past year QQQ returned +26.02% vs +13.71% for SCD, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.08% vs +1.19% for SCD. Past performance does not guarantee future results.
Which is riskier, QQQ or SCD?
QQQ has been the more volatile fund at 30.6% annualized versus 20.9% for SCD. Worst drawdown: QQQ -83.0% vs SCD -71.3%.
Should I hold both QQQ and SCD?
QQQ and SCD have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCD?
QQQ and SCD share 11 common holdings with a 17.7% weight overlap. Combined, they hold 231 unique securities.
Which pays a higher dividend, QQQ or SCD?
QQQ yields 0.41% while SCD yields 8.33%, so SCD currently pays the higher dividend yield.
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