QQQ vs THW
Invesco QQQ Trust, Series 1 vs Abrdn World Healthcare Fund
Quick Verdict
QQQ has a lower expense ratio. THW delivered stronger 1-year returns. THW offers more diversification with 123 holdings.
Side-by-Side Comparison
| Metric | QQQ | THW | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 3.00% | |
| AUM | $496.3B | $483M | |
| Dividend Yield | 0.44% | 10.27% | |
| Holdings | 108 | 123 | |
| YTD Return | +17.07% | +21.48% | |
| 1Y Return | +26.39% | +40.96% | |
| 3Y Return (annualized) | +26.08% | +14.66% | |
| 5Y Return (annualized) | +15.18% | +7.67% | |
| Volatility (annualized) | 30.6% | 21.1% | |
| Max Drawdown | -83.0% | -55.6% | |
| Fund Family | Invesco (US) | Aberdeen | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 26, 2015 |
QQQ vs THW Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Abrdn World Healthcare Fund (THW) is a ETF from Aberdeen. Over the past year QQQ returned +26.39% while THW returned +40.96%. Year to date, QQQ is up 17.07% versus a gain of 21.48% for THW.
Over three years, QQQ compounded at +26.08% per year against +14.66% for THW; over five years the annualized figures are +15.18% and +7.67% respectively. Across the full 11-year window we track, QQQ has the edge at +13.05% annualized vs +2.24%. 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 21.1% for THW. 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 -55.6% for THW. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while THW charges 3.00%. On a $10,000 position that is $18 vs $300 annually, a gap of $282 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 10.27% for THW.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, QQQ or THW?
QQQ has an expense ratio of 0.18% while THW charges 3.00%. QQQ is the cheaper option. On a $10,000 investment, that is $282 per year of difference.
Which performed better, QQQ or THW?
Over the past year QQQ returned +26.39% vs +40.96% for THW, so THW leads on 1-year performance. Over the longest common window we track (11 years), QQQ annualized +13.05% vs +2.24% for THW. Past performance does not guarantee future results.
Which is riskier, QQQ or THW?
QQQ has been the more volatile fund at 30.6% annualized versus 21.1% for THW. Worst drawdown: QQQ -83.0% vs THW -55.6%.
Should I hold both QQQ and THW?
QQQ and THW have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and THW?
QQQ and THW share 2 common holdings with a 0.7% weight overlap. Combined, they hold 195 unique securities.
Which pays a higher dividend, QQQ or THW?
QQQ yields 0.44% while THW yields 10.27%, so THW currently pays the higher dividend yield.
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