QQQ vs UDIV
Invesco QQQ Trust, Series 1 vs Franklin US Core Dividend Tilt Index ETF
Quick Verdict
UDIV has a lower expense ratio. QQQ delivered stronger 1-year returns. UDIV offers more diversification with 286 holdings.
Side-by-Side Comparison
| Metric | QQQ | UDIV | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.06% | |
| AUM | $496.3B | $150M | |
| Dividend Yield | 0.44% | 1.49% | |
| Holdings | 108 | 286 | |
| YTD Return | +16.64% | +16.53% | |
| 1Y Return | +27.27% | +25.87% | |
| 3Y Return (annualized) | +25.96% | +24.32% | |
| 5Y Return (annualized) | +14.54% | +14.00% | |
| Volatility (annualized) | 30.6% | 14.4% | |
| Max Drawdown | -83.0% | -35.5% | |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jun 1, 2016 |
QQQ vs UDIV Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Franklin US Core Dividend Tilt Index ETF (UDIV) is a ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +27.27% while UDIV returned +25.87%. Year to date, QQQ is up 16.64% versus a gain of 16.53% for UDIV.
Over three years, QQQ compounded at +25.96% per year against +24.32% for UDIV; over five years the annualized figures are +14.54% and +14.00% respectively. Across the full 10-year window we track, QQQ has the edge at +13.03% annualized vs +10.23%. 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 14.4% for UDIV. 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 -35.5% for UDIV. 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 UDIV charges 0.06%. On a $10,000 position that is $18 vs $6 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.49% for UDIV.
Holdings Overlap
QQQ and UDIV share 67 holdings out of 316 unique holdings combined, representing a 52.8% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, QQQ or UDIV?
QQQ has an expense ratio of 0.18% while UDIV charges 0.06%. UDIV is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or UDIV?
Over the past year QQQ returned +27.27% vs +25.87% for UDIV, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), QQQ annualized +13.03% vs +10.23% for UDIV. Past performance does not guarantee future results.
Which is riskier, QQQ or UDIV?
QQQ has been the more volatile fund at 30.6% annualized versus 14.4% for UDIV. Worst drawdown: QQQ -83.0% vs UDIV -35.5%.
Should I hold both QQQ and UDIV?
QQQ and UDIV 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 UDIV?
QQQ and UDIV share 67 common holdings with a 52.8% weight overlap. Combined, they hold 316 unique securities.
Which pays a higher dividend, QQQ or UDIV?
QQQ yields 0.44% while UDIV yields 1.49%, so UDIV currently pays the higher dividend yield.
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