QQQ vs WBND
Invesco QQQ Trust, Series 1 vs Western Asset Total Return ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. WBND offers more diversification with 512 holdings.
Side-by-Side Comparison
| Metric | QQQ | WBND | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.65% | |
| AUM | $496.3B | $10M | |
| Dividend Yield | 0.44% | 4.06% | |
| Holdings | 108 | 512 | |
| YTD Return | +16.64% | +4.40% | |
| 1Y Return | +27.27% | +1.11% | |
| 3Y Return (annualized) | +25.96% | +1.75% | |
| 5Y Return (annualized) | +14.54% | -2.98% | |
| Volatility (annualized) | 30.6% | 142.2% | |
| Max Drawdown | -83.0% | -81.5% | |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Oct 3, 2018 |
QQQ vs WBND Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Western Asset Total Return ETF (WBND) is a ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +27.27% while WBND returned +1.11%. Year to date, QQQ is up 16.64% versus a gain of 4.40% for WBND.
Over three years, QQQ compounded at +25.96% per year against +1.75% for WBND; over five years the annualized figures are +14.54% and -2.98% respectively. Across the full 7-year window we track, QQQ has the edge at +13.03% annualized vs +0.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WBND has been the more volatile fund, with annualized monthly volatility of 142.2% 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 -81.5% for WBND. 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while WBND 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 4.06% for WBND.
Frequently Asked Questions
Which is cheaper, QQQ or WBND?
QQQ has an expense ratio of 0.18% while WBND 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 WBND?
Over the past year QQQ returned +27.27% vs +1.11% for WBND, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), QQQ annualized +13.03% vs +0.85% for WBND. Past performance does not guarantee future results.
Which is riskier, QQQ or WBND?
WBND has been the more volatile fund at 142.2% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs WBND -81.5%.
Should I hold both QQQ and WBND?
QQQ and WBND have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, QQQ or WBND?
QQQ yields 0.44% while WBND yields 4.06%, so WBND currently pays the higher dividend yield.
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