CGBL vs QQQ
CGBL vs QQQ
Capital Group Core Balanced 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 | CGBL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.33% | 0.18% | |
| AUM | $7.2B | $455.8B | |
| Dividend Yield | 1.85% | 0.41% | |
| Holdings | 77 | 108 | |
| YTD Return | +5.58% | +12.48% | |
| 1Y Return | +12.91% | +22.35% | |
| 3Y Return (annualized) | - | +22.30% | |
| 5Y Return (annualized) | - | +14.24% | |
| Volatility (annualized) | 9.3% | 30.6% | |
| Max Drawdown | -11.7% | -83.0% | |
| Fund Family | Capital Group (US) | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Sep 26, 2023 | Mar 10, 1999 |
CGBL vs QQQ Performance
Capital Group Core Balanced ETF (CGBL) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGBL returned +12.91% while QQQ returned +22.35%. Year to date, CGBL is up 5.58% 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 9.3% for CGBL. 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 -11.7% for CGBL 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 0.85. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CGBL charges 0.33% per year while QQQ charges 0.18%. On a $10,000 position that is $33 vs $18 annually, a gap of $15 per year that compounds over a long holding period. On income, CGBL currently yields 1.85% against 0.41% for QQQ.
Holdings Overlap
CGBL and QQQ share 21 holdings out of 160 unique holdings combined, representing a 20.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in CGBL | Weight in QQQ | Difference |
|---|---|---|---|
| AAPL | 2.33% | 7.46% | 5.13% |
| NVDA | 0.93% | 7.88% | 6.95% |
| AVGO | 4.68% | 2.91% | 1.77% |
| MU | Pro | Pro | Pro |
| MSFT | Pro | Pro | Pro |
| GOOG | Pro | Pro | Pro |
| AMZN | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
| INTC | Pro | Pro | Pro |
See all 10 holdings CGBL shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, CGBL or QQQ?
CGBL has an expense ratio of 0.33% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, CGBL or QQQ?
Over the past year CGBL returned +12.91% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), CGBL annualized +17.19% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, CGBL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.3% for CGBL. Worst drawdown: CGBL -11.7% vs QQQ -83.0%.
Should I hold both CGBL and QQQ?
CGBL and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGBL and QQQ?
CGBL and QQQ share 21 common holdings with a 20.0% weight overlap. Combined, they hold 160 unique securities.
Which pays a higher dividend, CGBL or QQQ?
CGBL yields 1.85% while QQQ yields 0.41%, so CGBL currently pays the higher dividend yield.
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