QQQ vs WCMI

QQQ vs WCMI
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Quick Verdict

QQQ has a lower expense ratio. WCMI delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: WCMIMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQWCMIWinner
Expense Ratio0.18%0.85%
AUM$496.3B$1.9B
Dividend Yield0.44%0.55%
Holdings10851
YTD Return+16.64%+14.59%
1Y Return+27.27%+27.81%
3Y Return (annualized)+25.96%-
5Y Return (annualized)+14.54%-
Volatility (annualized)30.6%13.6%
Max Drawdown-83.0%-12.8%
Fund FamilyInvesco (US)First Trust Portfolios (US)
CategoryEquityEquity
InceptionMar 10, 1999Mar 31, 2020

QQQ vs WCMI Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and First Trust WCM International Equity ETF (WCMI) is a ETF from First Trust Portfolios (US). Over the past year QQQ returned +27.27% while WCMI returned +27.81%. Year to date, QQQ is up 16.64% versus a gain of 14.59% for WCMI.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.6% for WCMI. 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 -12.8% for WCMI. 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while WCMI charges 0.85%. On a $10,000 position that is $18 vs $85 annually, a gap of $67 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 0.55% for WCMI.

Holdings Overlap

0.3%overlap

QQQ and WCMI share 1 holdings out of 145 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQWeight in WCMIDifference
PDD:IE0.27%0.58%0.31%

Frequently Asked Questions

Which is cheaper, QQQ or WCMI?

QQQ has an expense ratio of 0.18% while WCMI charges 0.85%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.

Which performed better, QQQ or WCMI?

Over the past year QQQ returned +27.27% vs +27.81% for WCMI, so WCMI leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.03% vs +21.68% for WCMI. Past performance does not guarantee future results.

Which is riskier, QQQ or WCMI?

QQQ has been the more volatile fund at 30.6% annualized versus 13.6% for WCMI. Worst drawdown: QQQ -83.0% vs WCMI -12.8%.

Should I hold both QQQ and WCMI?

QQQ and WCMI have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and WCMI?

QQQ and WCMI share 1 common holdings with a 0.3% weight overlap. Combined, they hold 145 unique securities.

Which pays a higher dividend, QQQ or WCMI?

QQQ yields 0.44% while WCMI yields 0.55%, so WCMI currently pays the higher dividend yield.

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