CGCP vs QQQ
CGCP vs QQQ
Capital Group Core Plus Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. CGCP offers more diversification with 737 holdings.
Side-by-Side Comparison
| Metric | CGCP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.34% | 0.18% | |
| AUM | $8.4B | $455.8B | |
| Dividend Yield | 5.12% | 0.41% | |
| Holdings | 1,462 | 108 | |
| YTD Return | -0.04% | +16.83% | |
| 1Y Return | +2.44% | +26.58% | |
| 3Y Return (annualized) | +5.09% | +24.70% | |
| 5Y Return (annualized) | - | +14.88% | |
| Volatility (annualized) | 7.0% | 30.6% | |
| Max Drawdown | -15.1% | -83.0% | |
| Fund Family | Capital Group (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 22, 2022 | Mar 10, 1999 |
CGCP vs QQQ Performance
Capital Group Core Plus Income ETF (CGCP) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGCP returned +2.44% while QQQ returned +26.58%. Year to date, CGCP is down 0.04% versus a gain of 16.83% for QQQ.
Over three years, CGCP compounded at +5.09% per year against +24.70% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.06% annualized vs +1.49%. 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 7.0% for CGCP. 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 -15.1% for CGCP 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGCP charges 0.34% per year while QQQ charges 0.18%. On a $10,000 position that is $34 vs $18 annually, a gap of $16 per year that compounds over a long holding period. On income, CGCP currently yields 5.12% against 0.41% for QQQ.
Holdings Overlap
CGCP and QQQ share 0 holdings out of 840 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, CGCP or QQQ?
CGCP has an expense ratio of 0.34% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, CGCP or QQQ?
Over the past year CGCP returned +2.44% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), CGCP annualized +1.49% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, CGCP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.0% for CGCP. Worst drawdown: CGCP -15.1% vs QQQ -83.0%.
Should I hold both CGCP and QQQ?
CGCP and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGCP and QQQ?
CGCP and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 840 unique securities.
Which pays a higher dividend, CGCP or QQQ?
CGCP yields 5.12% while QQQ yields 0.41%, so CGCP currently pays the higher dividend yield.
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