GDO vs QQQ
GDO vs QQQ
Western Asset Global Corporate Defined Opportunity Fund Inc. vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. GDO offers more diversification with 213 holdings.
Side-by-Side Comparison
| Metric | GDO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.20% | 0.18% | |
| AUM | $84M | $455.8B | |
| Dividend Yield | 12.86% | 0.41% | |
| Holdings | 330 | 108 | |
| YTD Return | -6.16% | +12.48% | |
| 1Y Return | -0.53% | +22.35% | |
| 3Y Return (annualized) | +5.43% | +22.30% | |
| 5Y Return (annualized) | -1.18% | +14.24% | |
| Volatility (annualized) | 12.7% | 30.6% | |
| Max Drawdown | -41.8% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 24, 2009 | Mar 10, 1999 |
GDO vs QQQ Performance
Western Asset Global Corporate Defined Opportunity Fund Inc. (GDO) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GDO returned -0.53% while QQQ returned +22.35%. Year to date, GDO is down 6.16% versus a gain of 12.48% for QQQ.
Over three years, GDO compounded at +5.43% per year against +22.30% for QQQ; over five years the annualized figures are -1.18% and +14.24% respectively. Across the full 17-year window we track, QQQ has the edge at +12.91% annualized vs -0.63%. 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 12.7% for GDO. 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 -41.8% for GDO 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GDO charges 1.20% per year while QQQ charges 0.18%. On a $10,000 position that is $120 vs $18 annually, a gap of $102 per year that compounds over a long holding period. On income, GDO currently yields 12.86% against 0.41% for QQQ.
Holdings Overlap
GDO and QQQ share 0 holdings out of 316 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, GDO or QQQ?
GDO has an expense ratio of 1.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $102 per year of difference.
Which performed better, GDO or QQQ?
Over the past year GDO returned -0.53% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), GDO annualized -0.63% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, GDO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.7% for GDO. Worst drawdown: GDO -41.8% vs QQQ -83.0%.
Should I hold both GDO and QQQ?
GDO and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GDO and QQQ?
GDO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 316 unique securities.
Which pays a higher dividend, GDO or QQQ?
GDO yields 12.86% while QQQ yields 0.41%, so GDO currently pays the higher dividend yield.
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