QQQ vs WAR
Invesco QQQ Trust, Series 1 vs US Global Technology And Aerospace & Defense ETF
Quick Verdict
QQQ has a lower expense ratio. WAR delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | WAR | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.60% | |
| AUM | $496.3B | $40M | |
| Dividend Yield | 0.44% | 10.22% | |
| Holdings | 108 | 30 | |
| YTD Return | +17.30% | +39.39% | |
| 1Y Return | +24.93% | +58.22% | |
| 3Y Return (annualized) | +26.19% | - | |
| 5Y Return (annualized) | +15.34% | - | |
| Volatility (annualized) | 30.6% | 32.3% | |
| Max Drawdown | -83.0% | -25.0% | |
| Fund Family | Invesco (US) | U.S. Global Investors, Inc. | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 30, 2024 |
QQQ vs WAR Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and US Global Technology And Aerospace & Defense ETF (WAR) is a ETF from U.S. Global Investors, Inc.. Over the past year QQQ returned +24.93% while WAR returned +58.22%. Year to date, QQQ is up 17.30% versus a gain of 39.39% for WAR.
Risk: Volatility and Drawdowns
WAR has been the more volatile fund, with annualized monthly volatility of 32.3% compared with 30.6% for QQQ. 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 -25.0% for WAR. 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while WAR charges 0.60%. On a $10,000 position that is $18 vs $60 annually, a gap of $42 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 10.22% for WAR.
Holdings Overlap
QQQ and WAR share 10 holdings out of 121 unique holdings combined, representing a 13.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or WAR?
QQQ has an expense ratio of 0.18% while WAR charges 0.60%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, QQQ or WAR?
Over the past year QQQ returned +24.93% vs +58.22% for WAR, so WAR leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.06% vs +46.04% for WAR. Past performance does not guarantee future results.
Which is riskier, QQQ or WAR?
WAR has been the more volatile fund at 32.3% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs WAR -25.0%.
Should I hold both QQQ and WAR?
QQQ and WAR have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and WAR?
QQQ and WAR share 10 common holdings with a 13.3% weight overlap. Combined, they hold 121 unique securities.
Which pays a higher dividend, QQQ or WAR?
QQQ yields 0.44% while WAR yields 10.22%, so WAR currently pays the higher dividend yield.
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