CAPE vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. CAPE offers more diversification with 194 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: CAPE

Side-by-Side Comparison

MetricCAPEQQQWinner
Expense Ratio0.65%0.18%
AUM$240M$455.8B
Dividend Yield1.25%0.41%
Holdings196108
YTD Return+2.70%+12.48%
1Y Return+5.64%+22.35%
3Y Return (annualized)+10.42%+22.30%
5Y Return (annualized)-+14.24%
Volatility (annualized)16.8%30.6%
Max Drawdown-22.1%-83.0%
Fund FamilyDoubleLine FundsInvesco (US)
CategoryEquityEquity
InceptionMar 31, 2022Mar 10, 1999

CAPE vs QQQ Performance

DoubleLine Shiller CAPE US Equities ETF (CAPE) is a ETF from DoubleLine Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CAPE returned +5.64% while QQQ returned +22.35%. Year to date, CAPE is up 2.70% versus a gain of 12.48% for QQQ.

Over three years, CAPE compounded at +10.42% per year against +22.30% for QQQ. Across the full 4-year window we track, QQQ has the edge at +12.91% annualized vs +7.67%. 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 16.8% for CAPE. 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 -22.1% for CAPE 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

CAPE charges 0.65% per year while QQQ charges 0.18%. On a $10,000 position that is $65 vs $18 annually, a gap of $47 per year that compounds over a long holding period. On income, CAPE currently yields 1.25% against 0.41% for QQQ.

Holdings Overlap

24.9%overlap

CAPE and QQQ share 26 holdings out of 271 unique holdings combined, representing a 24.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in CAPEWeight in QQQDifference
AMZN5.67%4.26%1.41%
TSLA4.70%3.16%1.54%
META4.55%3.11%1.44%
GOOGLProProPro
GOOGProProPro
NFLXProProPro
TMUSProProPro
AMGNProProPro
CMCSAProProPro
GILDProProPro
See all 10 holdings CAPE shares with QQQ
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, CAPE or QQQ?

CAPE has an expense ratio of 0.65% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $47 per year of difference.

Which performed better, CAPE or QQQ?

Over the past year CAPE returned +5.64% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), CAPE annualized +7.67% vs +12.91% for QQQ. Past performance does not guarantee future results.

Which is riskier, CAPE or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 16.8% for CAPE. Worst drawdown: CAPE -22.1% vs QQQ -83.0%.

Should I hold both CAPE and QQQ?

CAPE and QQQ have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CAPE and QQQ?

CAPE and QQQ share 26 common holdings with a 24.9% weight overlap. Combined, they hold 271 unique securities.

Which pays a higher dividend, CAPE or QQQ?

CAPE yields 1.25% while QQQ yields 0.41%, so CAPE currently pays the higher dividend yield.

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