ACLO vs QQQ
ACLO vs QQQ
TCW AAA CLO ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | ACLO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.18% | |
| AUM | $335M | $455.8B | |
| Dividend Yield | 4.89% | 0.41% | |
| Holdings | 229 | 108 | |
| YTD Return | +2.92% | +12.48% | |
| 1Y Return | +5.15% | +22.35% | |
| 3Y Return (annualized) | - | +22.30% | |
| 5Y Return (annualized) | - | +14.24% | |
| Volatility (annualized) | 0.7% | 30.6% | |
| Max Drawdown | -1.0% | -83.0% | |
| Fund Family | TCW ETFs | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2024 | Mar 10, 1999 |
ACLO vs QQQ Performance
TCW AAA CLO ETF (ACLO) is a ETF from TCW ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ACLO returned +5.15% while QQQ returned +22.35%. Year to date, ACLO is up 2.92% versus a gain of 12.48% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 0.7% for ACLO. 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 -1.0% for ACLO and -83.0% for QQQ. 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ACLO charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, ACLO currently yields 4.89% against 0.41% for QQQ.
Holdings Overlap
ACLO and QQQ share 0 holdings out of 160 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, ACLO or QQQ?
ACLO has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, ACLO or QQQ?
Over the past year ACLO returned +5.15% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), ACLO annualized +5.42% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, ACLO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 0.7% for ACLO. Worst drawdown: ACLO -1.0% vs QQQ -83.0%.
Should I hold both ACLO and QQQ?
ACLO and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ACLO and QQQ?
ACLO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 160 unique securities.
Which pays a higher dividend, ACLO or QQQ?
ACLO yields 4.89% while QQQ yields 0.41%, so ACLO currently pays the higher dividend yield.
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