QQQ vs WTAI
Invesco QQQ Trust, Series 1 vs WisdomTree Artificial Intelligence and Innovation Fund ETF
Quick Verdict
QQQ has a lower expense ratio. WTAI delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | WTAI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.45% | |
| AUM | $496.3B | $716M | |
| Dividend Yield | 0.44% | 1.35% | |
| Holdings | 108 | 75 | |
| YTD Return | +16.23% | +38.96% | |
| 1Y Return | +26.23% | +64.56% | |
| 3Y Return (annualized) | +25.75% | +32.43% | |
| 5Y Return (annualized) | +14.78% | - | |
| Volatility (annualized) | 30.6% | 33.3% | |
| Max Drawdown | -83.0% | -45.9% | |
| Fund Family | Invesco (US) | WisdomTree Investments | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 9, 2021 |
QQQ vs WTAI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and WisdomTree Artificial Intelligence and Innovation Fund ETF (WTAI) is a ETF from WisdomTree Investments. Over the past year QQQ returned +26.23% while WTAI returned +64.56%. Year to date, QQQ is up 16.23% versus a gain of 38.96% for WTAI.
Over three years, QQQ compounded at +25.75% per year against +32.43% for WTAI. Across the full 5-year window we track, QQQ has the edge at +13.02% annualized vs +11.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WTAI has been the more volatile fund, with annualized monthly volatility of 33.3% 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 -45.9% for WTAI. 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while WTAI charges 0.45%. On a $10,000 position that is $18 vs $45 annually, a gap of $27 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 1.35% for WTAI.
Holdings Overlap
QQQ and WTAI share 25 holdings out of 128 unique holdings combined, representing a 41.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or WTAI?
QQQ has an expense ratio of 0.18% while WTAI charges 0.45%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, QQQ or WTAI?
Over the past year QQQ returned +26.23% vs +64.56% for WTAI, so WTAI leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.02% vs +11.50% for WTAI. Past performance does not guarantee future results.
Which is riskier, QQQ or WTAI?
WTAI has been the more volatile fund at 33.3% annualized versus 30.6% for QQQ. Worst drawdown: QQQ -83.0% vs WTAI -45.9%.
Should I hold both QQQ and WTAI?
QQQ and WTAI have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and WTAI?
QQQ and WTAI share 25 common holdings with a 41.3% weight overlap. Combined, they hold 128 unique securities.
Which pays a higher dividend, QQQ or WTAI?
QQQ yields 0.44% while WTAI yields 1.35%, so WTAI currently pays the higher dividend yield.
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