QQQ vs WIA
Invesco QQQ Trust, Series 1 vs Western Asset Inflation-Linked Income Fund
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. WIA offers more diversification with 161 holdings.
Side-by-Side Comparison
| Metric | QQQ | WIA | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.83% | |
| AUM | $496.3B | $207M | |
| Dividend Yield | 0.44% | 7.07% | |
| Holdings | 108 | 161 | |
| YTD Return | +16.64% | +1.15% | |
| 1Y Return | +27.27% | +3.23% | |
| 3Y Return (annualized) | +25.96% | +7.43% | |
| 5Y Return (annualized) | +14.54% | -0.68% | |
| Volatility (annualized) | 30.6% | 9.7% | |
| Max Drawdown | -83.0% | -43.6% | |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Sep 30, 2003 |
QQQ vs WIA Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Western Asset Inflation-Linked Income Fund (WIA) is a ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +27.27% while WIA returned +3.23%. Year to date, QQQ is up 16.64% versus a gain of 1.15% for WIA.
Over three years, QQQ compounded at +25.96% per year against +7.43% for WIA; over five years the annualized figures are +14.54% and -0.68% respectively. Across the full 23-year window we track, QQQ has the edge at +13.03% annualized vs -0.44%. 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 9.7% for WIA. 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 -43.6% for WIA. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while WIA charges 0.83%. On a $10,000 position that is $18 vs $83 annually, a gap of $65 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 7.07% for WIA.
Holdings Overlap
QQQ and WIA share 0 holdings out of 191 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or WIA?
QQQ has an expense ratio of 0.18% while WIA charges 0.83%. QQQ is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, QQQ or WIA?
Over the past year QQQ returned +27.27% vs +3.23% for WIA, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.03% vs -0.44% for WIA. Past performance does not guarantee future results.
Which is riskier, QQQ or WIA?
QQQ has been the more volatile fund at 30.6% annualized versus 9.7% for WIA. Worst drawdown: QQQ -83.0% vs WIA -43.6%.
Should I hold both QQQ and WIA?
QQQ and WIA have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and WIA?
QQQ and WIA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 191 unique securities.
Which pays a higher dividend, QQQ or WIA?
QQQ yields 0.44% while WIA yields 7.07%, so WIA currently pays the higher dividend yield.
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