CWB 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

MetricCWBQQQWinner
Expense Ratio0.40%0.18%
AUM$5.6B$455.8B
Dividend Yield1.37%0.41%
Holdings334108
YTD Return+14.43%+16.83%
1Y Return+23.86%+26.58%
3Y Return (annualized)+15.43%+24.70%
5Y Return (annualized)+5.65%+14.88%
Volatility (annualized)12.8%30.6%
Max Drawdown-32.2%-83.0%
Fund FamilyState Street Investment ManagementInvesco (US)
CategoryConvertibleEquity
InceptionApr 14, 2009Mar 10, 1999

CWB vs QQQ Performance

State Street SPDR Bloomberg Convertible Securities ETF (CWB) is a ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CWB returned +23.86% while QQQ returned +26.58%. Year to date, CWB is up 14.43% versus a gain of 16.83% for QQQ.

Over three years, CWB compounded at +15.43% per year against +24.70% for QQQ; over five years the annualized figures are +5.65% and +14.88% respectively. Across the full 17-year window we track, QQQ has the edge at +13.06% annualized vs +7.94%. 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 12.8% for CWB. 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 -32.2% for CWB 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

CWB charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, CWB currently yields 1.37% against 0.41% for QQQ.

Holdings Overlap

1.0%overlap

CWB and QQQ share 3 holdings out of 201 unique holdings combined, representing a 1.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in CWBWeight in QQQDifference
WDC3.19%0.85%2.34%
MSTR0.30%0.13%0.17%
TTWO0.00%0.20%0.20%

Frequently Asked Questions

Which is cheaper, CWB or QQQ?

CWB has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.

Which performed better, CWB or QQQ?

Over the past year CWB returned +23.86% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), CWB annualized +7.94% vs +13.06% for QQQ. Past performance does not guarantee future results.

Which is riskier, CWB or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 12.8% for CWB. Worst drawdown: CWB -32.2% vs QQQ -83.0%.

Should I hold both CWB and QQQ?

CWB 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 CWB and QQQ?

CWB and QQQ share 3 common holdings with a 1.0% weight overlap. Combined, they hold 201 unique securities.

Which pays a higher dividend, CWB or QQQ?

CWB yields 1.37% while QQQ yields 0.41%, so CWB currently pays the higher dividend yield.

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