QQQ vs UMMA
Invesco QQQ Trust, Series 1 vs Wahed Dow Jones Islamic World ETF
Quick Verdict
QQQ has a lower expense ratio. UMMA delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | UMMA | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.65% | |
| AUM | $496.3B | $303M | |
| Dividend Yield | 0.44% | 0.98% | |
| Holdings | 108 | 95 | |
| YTD Return | +16.64% | +25.93% | |
| 1Y Return | +27.27% | +46.54% | |
| 3Y Return (annualized) | +25.96% | +23.26% | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 20.8% | |
| Max Drawdown | -83.0% | -34.2% | |
| Fund Family | Invesco (US) | Wahed Invest | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jan 6, 2022 |
QQQ vs UMMA Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Wahed Dow Jones Islamic World ETF (UMMA) is a ETF from Wahed Invest. Over the past year QQQ returned +27.27% while UMMA returned +46.54%. Year to date, QQQ is up 16.64% versus a gain of 25.93% for UMMA.
Over three years, QQQ compounded at +25.96% per year against +23.26% for UMMA. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs +10.55%. 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 20.8% for UMMA. 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 -34.2% for UMMA. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while UMMA charges 0.65%. On a $10,000 position that is $18 vs $65 annually, a gap of $47 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.98% for UMMA.
Holdings Overlap
QQQ and UMMA share 1 holdings out of 191 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in UMMA | Difference |
|---|---|---|---|
| PDD:IE | 0.27% | 0.62% | 0.35% |
Frequently Asked Questions
Which is cheaper, QQQ or UMMA?
QQQ has an expense ratio of 0.18% while UMMA charges 0.65%. QQQ is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, QQQ or UMMA?
Over the past year QQQ returned +27.27% vs +46.54% for UMMA, so UMMA leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.03% vs +10.55% for UMMA. Past performance does not guarantee future results.
Which is riskier, QQQ or UMMA?
QQQ has been the more volatile fund at 30.6% annualized versus 20.8% for UMMA. Worst drawdown: QQQ -83.0% vs UMMA -34.2%.
Should I hold both QQQ and UMMA?
QQQ and UMMA have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and UMMA?
QQQ and UMMA share 1 common holdings with a 0.3% weight overlap. Combined, they hold 191 unique securities.
Which pays a higher dividend, QQQ or UMMA?
QQQ yields 0.44% while UMMA yields 0.98%, so UMMA currently pays the higher dividend yield.
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