CGUI vs QQQ

Quick Verdict

QQQ delivered stronger 1-year returns. CGUI offers more diversification with 170 holdings.

Lower Fees: TiedHigher Returns: QQQMore Diversified: CGUI

Side-by-Side Comparison

MetricCGUIQQQWinner
Expense Ratio0.18%0.18%
AUM$318M$455.8B
Dividend Yield3.83%0.41%
Holdings330108
YTD Return+2.08%+17.27%
1Y Return+3.87%+28.64%
3Y Return (annualized)-+24.88%
5Y Return (annualized)-+14.86%
Volatility (annualized)0.5%30.6%
Max Drawdown-0.2%-83.0%
Fund FamilyCapital Group (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionJun 25, 2024Mar 10, 1999

CGUI vs QQQ Performance

Capital Group Ultra Short Income ETF (CGUI) is a ETF from Capital Group (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CGUI returned +3.87% while QQQ returned +28.64%. Year to date, CGUI is up 2.08% versus a gain of 17.27% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 0.5% for CGUI. 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 -0.2% for CGUI 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CGUI charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, CGUI currently yields 3.83% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

CGUI and QQQ share 0 holdings out of 273 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, CGUI or QQQ?

CGUI has an expense ratio of 0.18% while QQQ charges 0.18%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, CGUI or QQQ?

Over the past year CGUI returned +3.87% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), CGUI annualized +4.83% vs +13.08% for QQQ. Past performance does not guarantee future results.

Which is riskier, CGUI or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 0.5% for CGUI. Worst drawdown: CGUI -0.2% vs QQQ -83.0%.

Should I hold both CGUI and QQQ?

CGUI and QQQ have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CGUI and QQQ?

CGUI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 273 unique securities.

Which pays a higher dividend, CGUI or QQQ?

CGUI yields 3.83% while QQQ yields 0.41%, so CGUI currently pays the higher dividend yield.

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