QQQ vs WSML
Invesco QQQ Trust, Series 1 vs iShares MSCI World Small-Cap ETF
Quick Verdict
QQQ has a lower expense ratio. WSML delivered stronger 1-year returns. WSML offers more diversification with 1555 holdings.
Side-by-Side Comparison
| Metric | QQQ | WSML | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.30% | |
| AUM | $455.8B | $654M | |
| Dividend Yield | 0.41% | 2.76% | |
| Holdings | 108 | 3,540 | |
| YTD Return | +17.85% | +16.94% | |
| 1Y Return | +26.45% | +29.36% | |
| 3Y Return (annualized) | +26.07% | - | |
| 5Y Return (annualized) | +15.16% | - | |
| Volatility (annualized) | 30.6% | 13.0% | |
| Max Drawdown | -83.0% | -10.7% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Apr 1, 2025 |
QQQ vs WSML Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares MSCI World Small-Cap ETF (WSML) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +26.45% while WSML returned +29.36%. Year to date, QQQ is up 17.85% versus a gain of 16.94% for WSML.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.0% for WSML. 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 -10.7% for WSML. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while WSML charges 0.30%. On a $10,000 position that is $18 vs $30 annually, a gap of $12 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.76% for WSML.
Holdings Overlap
QQQ and WSML share 1 holdings out of 1657 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in QQQ | Weight in WSML | Difference |
|---|---|---|---|
| SNDK | 1.10% | 2.31% | 1.21% |
Frequently Asked Questions
Which is cheaper, QQQ or WSML?
QQQ has an expense ratio of 0.18% while WSML charges 0.30%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, QQQ or WSML?
Over the past year QQQ returned +26.45% vs +29.36% for WSML, so WSML leads on 1-year performance. Over the longest common window we track (1 years), QQQ annualized +13.09% vs +36.88% for WSML. Past performance does not guarantee future results.
Which is riskier, QQQ or WSML?
QQQ has been the more volatile fund at 30.6% annualized versus 13.0% for WSML. Worst drawdown: QQQ -83.0% vs WSML -10.7%.
Should I hold both QQQ and WSML?
QQQ and WSML have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and WSML?
QQQ and WSML share 1 common holdings with a 1.1% weight overlap. Combined, they hold 1657 unique securities.
Which pays a higher dividend, QQQ or WSML?
QQQ yields 0.41% while WSML yields 2.76%, so WSML currently pays the higher dividend yield.
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