QQQ vs USMF
Invesco QQQ Trust, Series 1 vs WisdomTree US Multifactor Fund
Which is better, QQQ or USMF?
Large Cap Growth against Mid Cap Blend.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. USMF is less concentrated, with 17.7% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | USMF |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.28% |
| AUM | $483.5B | $279M |
| Dividend Yield | 0.44% | 1.33% |
| Holdings | 107 | 202 |
| YTD Return | +15.21%Best | +1.84% |
| 1Y Return | +19.78%Best | +0.83% |
| 3Y Return (annualized) | +24.58%Best | +11.10% |
| 5Y Return (annualized) | +13.93%Best | +6.65% |
| Volatility (annualized) | 19.7% | 14.9%Best |
| Max Drawdown | -35.1%Best | -36.2% |
| $10,000 over 5 years | $19,195Best | $13,798 |
| Top 10 Weight | 46.5% | 17.7%Best |
| Fund Family | Invesco (US) | WisdomTree Investments |
| Category | Equity | Equity |
| Style | Large Cap Growth | Mid Cap Blend |
| Inception | Mar 10, 1999 | Jun 29, 2017 |
Volatility and max drawdown are measured over the window both funds cover: Jun 29, 2017 to Sep 16, 2026 (9.2 years).
QQQ vs USMF growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.2 years both funds cover.
QQQ vs USMF Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and WisdomTree US Multifactor Fund (USMF) is an ETF from WisdomTree Investments. Over the past year QQQ returned +19.78% while USMF returned +0.83%. Year to date, QQQ is up 15.21% versus a gain of 1.84% for USMF.
Over three years, QQQ compounded at +24.58% per year against +11.10% for USMF; over five years the annualized figures are +13.93% and +6.65% respectively. Across the full 9-year window we track, QQQ has the edge at +19.81% annualized vs +9.83%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 14.9% for USMF. 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 -35.1% for QQQ and -36.2% for USMF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while USMF charges 0.28%. On a $10,000 position that is $18 vs $28 annually, a gap of $10 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.33% for USMF.
Holdings Overlap
40.7% of QQQ's money is in holdings USMF also owns. 21.3% of USMF's money is in holdings QQQ also owns.
The two portfolios partly overlap.
27 positions in common, counted across the 102 positions we hold weights for in QQQ and 197 in USMF, against full books of 107 and 202.
What only one of them owns
Our book lists 163 positions for USMF that do not appear in our book for QQQ (71.5% of the fund), and 69 for QQQ that do not appear in USMF (56.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in USMF | Difference |
|---|---|---|---|
| NVDANvidia Corp | 8.44% | 4.09% | 4.35% |
| AAPLApple, Inc | 7.27% | 4.21% | 3.06% |
| MUMicron Technology, Inc. | 4.43% | 1.05% | 3.38% |
| AVGOBroadcom Inc | 3.16% | 1.52% | 1.64% |
| CSCOCisco Systems Inc. - Ordinary Shares | 2.10% | 0.65% | 1.45% |
| AMATApplied Materials, Inc. | 1.86% | 0.66% | 1.20% |
| LRCXLam Research Corp 3.125 06/15/2060 | 1.69% | 0.65% | 1.04% |
| PANWPalo Alto Networks, Inc | 1.30% | 0.48% | 0.82% |
| TXNTexas Instrument Inc | 1.12% | 0.52% | 0.60% |
| KLACKla Corp | 1.11% | 0.52% | 0.59% |
40.7% of QQQ is already inside USMF.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or USMF?
QQQ has an expense ratio of 0.18% while USMF charges 0.28%. QQQ is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, QQQ or USMF?
Over the past year QQQ returned +19.78% vs +0.83% for USMF, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +19.81% vs +9.83% for USMF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or USMF?
QQQ has been the more volatile fund at 19.7% annualized versus 14.9% for USMF. Worst drawdown: QQQ -35.1% vs USMF -36.2%.
Should I hold both QQQ and USMF?
QQQ and USMF have a monthly-return correlation of 0.75, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between QQQ and USMF?
40.7% of QQQ's money is in holdings USMF also owns. 21.3% of USMF's is in holdings QQQ also owns. They hold 27 positions in common, counted across the 102 positions we hold weights for in QQQ and 197 in USMF.
Which pays a higher dividend, QQQ or USMF?
QQQ yields 0.44% while USMF yields 1.33%, so USMF currently pays the higher dividend yield.
Is USMF better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. USMF is less concentrated, with 17.7% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.