QQQ vs SHAG

Quick Verdict

SHAG has a lower expense ratio. QQQ delivered stronger 1-year returns. SHAG offers more diversification with 1024 holdings.

Lower Fees: SHAGHigher Returns: QQQMore Diversified: SHAG

Side-by-Side Comparison

MetricQQQSHAGWinner
Expense Ratio0.18%0.12%
AUM$455.8B$47M
Dividend Yield0.41%4.31%
Holdings1081,122
YTD Return+14.45%-1.79%
1Y Return+24.70%-0.14%
3Y Return (annualized)+24.19%+3.74%
5Y Return (annualized)+14.49%+0.97%
Volatility (annualized)30.6%2.6%
Max Drawdown-83.0%-9.6%
Fund FamilyInvesco (US)WisdomTree Investments
CategoryEquityFixed Income
InceptionMar 10, 1999May 18, 2017

QQQ vs SHAG Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Wisdomtree Yield Enhanced US Short-Term Aggregate Bond Fund (SHAG) is a ETF from WisdomTree Investments. Over the past year QQQ returned +24.70% while SHAG returned -0.14%. Year to date, QQQ is up 14.45% versus a loss of 1.79% for SHAG.

Over three years, QQQ compounded at +24.19% per year against +3.74% for SHAG; over five years the annualized figures are +14.49% and +0.97% respectively. Across the full 9-year window we track, QQQ has the edge at +12.98% annualized vs +1.83%. 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 2.6% for SHAG. 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 -83.0% for QQQ and -9.6% for SHAG. 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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SHAG charges 0.12%. On a $10,000 position that is $18 vs $12 annually, a gap of $6 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.31% for SHAG.

Holdings Overlap

0.2%overlap

QQQ and SHAG share 1 holdings out of 1126 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in QQQWeight in SHAGDifference
KDP0.19%0.18%0.01%

Frequently Asked Questions

Which is cheaper, QQQ or SHAG?

QQQ has an expense ratio of 0.18% while SHAG charges 0.12%. SHAG is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, QQQ or SHAG?

Over the past year QQQ returned +24.70% vs -0.14% for SHAG, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +12.98% vs +1.83% for SHAG. Past performance does not guarantee future results.

Which is riskier, QQQ or SHAG?

QQQ has been the more volatile fund at 30.6% annualized versus 2.6% for SHAG. Worst drawdown: QQQ -83.0% vs SHAG -9.6%.

Should I hold both QQQ and SHAG?

QQQ and SHAG have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and SHAG?

QQQ and SHAG share 1 common holdings with a 0.2% weight overlap. Combined, they hold 1126 unique securities.

Which pays a higher dividend, QQQ or SHAG?

QQQ yields 0.41% while SHAG yields 4.31%, so SHAG currently pays the higher dividend yield.

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