CGSD vs QQQ
CGSD vs QQQ
Capital Group Short Duration Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. CGSD offers more diversification with 502 holdings.
Side-by-Side Comparison
| Metric | CGSD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $2.4B | $455.8B | |
| Dividend Yield | 4.46% | 0.41% | |
| Holdings | 1,035 | 108 | |
| YTD Return | +1.14% | +12.48% | |
| 1Y Return | +3.74% | +22.35% | |
| 3Y Return (annualized) | +5.29% | +22.30% | |
| 5Y Return (annualized) | - | +14.24% | |
| Volatility (annualized) | 1.9% | 30.6% | |
| Max Drawdown | -1.8% | -83.0% | |
| Fund Family | Capital Group (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 25, 2022 | Mar 10, 1999 |
CGSD vs QQQ Performance
Capital Group Short Duration Income ETF (CGSD) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGSD returned +3.74% while QQQ returned +22.35%. Year to date, CGSD is up 1.14% versus a gain of 12.48% for QQQ.
Over three years, CGSD compounded at +5.29% per year against +22.30% for QQQ. Across the full 4-year window we track, QQQ has the edge at +12.91% annualized vs +5.05%. 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 1.9% for CGSD. 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 -1.8% for CGSD 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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CGSD charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, CGSD currently yields 4.46% against 0.41% for QQQ.
Holdings Overlap
CGSD and QQQ share 0 holdings out of 605 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, CGSD or QQQ?
CGSD has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, CGSD or QQQ?
Over the past year CGSD returned +3.74% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), CGSD annualized +5.05% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, CGSD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 1.9% for CGSD. Worst drawdown: CGSD -1.8% vs QQQ -83.0%.
Should I hold both CGSD and QQQ?
CGSD and QQQ have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGSD and QQQ?
CGSD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 605 unique securities.
Which pays a higher dividend, CGSD or QQQ?
CGSD yields 4.46% while QQQ yields 0.41%, so CGSD currently pays the higher dividend yield.
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