QQQ vs WIW
Invesco QQQ Trust, Series 1 vs Western Asset Inflation-Linked Opportunities & Income Fund
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. WIW offers more diversification with 161 holdings.
Side-by-Side Comparison
| Metric | QQQ | WIW | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.71% | |
| AUM | $496.3B | $572M | |
| Dividend Yield | 0.44% | 8.06% | |
| Holdings | 108 | 161 | |
| YTD Return | +16.64% | +2.47% | |
| 1Y Return | +27.27% | +3.05% | |
| 3Y Return (annualized) | +25.96% | +7.90% | |
| 5Y Return (annualized) | +14.54% | +0.47% | |
| Volatility (annualized) | 30.6% | 10.0% | |
| Max Drawdown | -83.0% | -43.9% | |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 27, 2004 |
QQQ vs WIW Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Western Asset Inflation-Linked Opportunities & Income Fund (WIW) is a ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +27.27% while WIW returned +3.05%. Year to date, QQQ is up 16.64% versus a gain of 2.47% for WIW.
Over three years, QQQ compounded at +25.96% per year against +7.90% for WIW; over five years the annualized figures are +14.54% and +0.47% respectively. Across the full 23-year window we track, QQQ has the edge at +13.03% annualized vs -0.39%. 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 10.0% for WIW. 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 -43.9% for WIW. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while WIW charges 0.71%. On a $10,000 position that is $18 vs $71 annually, a gap of $53 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 8.06% for WIW.
Holdings Overlap
QQQ and WIW share 0 holdings out of 198 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 WIW?
QQQ has an expense ratio of 0.18% while WIW charges 0.71%. QQQ is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, QQQ or WIW?
Over the past year QQQ returned +27.27% vs +3.05% for WIW, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), QQQ annualized +13.03% vs -0.39% for WIW. Past performance does not guarantee future results.
Which is riskier, QQQ or WIW?
QQQ has been the more volatile fund at 30.6% annualized versus 10.0% for WIW. Worst drawdown: QQQ -83.0% vs WIW -43.9%.
Should I hold both QQQ and WIW?
QQQ and WIW have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and WIW?
QQQ and WIW share 0 common holdings with a 0.0% weight overlap. Combined, they hold 198 unique securities.
Which pays a higher dividend, QQQ or WIW?
QQQ yields 0.44% while WIW yields 8.06%, so WIW currently pays the higher dividend yield.
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