CGIB vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricCGIBQQQWinner
Expense Ratio0.45%0.18%
AUM$296M$455.8B
Dividend Yield1.44%0.41%
Holdings322108
YTD Return+0.53%+12.48%
1Y Return+1.84%+22.35%
3Y Return (annualized)-+22.30%
5Y Return (annualized)-+14.24%
Volatility (annualized)3.1%30.6%
Max Drawdown-2.7%-83.0%
Fund FamilyCapital Group (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionJun 25, 2024Mar 10, 1999

CGIB vs QQQ Performance

Capital Group International Bond ETF (CGIB) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGIB returned +1.84% while QQQ returned +22.35%. Year to date, CGIB is up 0.53% 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 3.1% for CGIB. 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 -2.7% for CGIB 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CGIB charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, CGIB currently yields 1.44% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

CGIB and QQQ share 0 holdings out of 163 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, CGIB or QQQ?

CGIB has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.

Which performed better, CGIB or QQQ?

Over the past year CGIB returned +1.84% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), CGIB annualized +3.68% vs +12.91% for QQQ. Past performance does not guarantee future results.

Which is riskier, CGIB or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 3.1% for CGIB. Worst drawdown: CGIB -2.7% vs QQQ -83.0%.

Should I hold both CGIB and QQQ?

CGIB and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CGIB and QQQ?

CGIB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 163 unique securities.

Which pays a higher dividend, CGIB or QQQ?

CGIB yields 1.44% while QQQ yields 0.41%, so CGIB currently pays the higher dividend yield.

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