QQQ vs USFI

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

MetricQQQUSFIWinner
Expense Ratio0.18%0.39%
AUM$455.8B$10M
Dividend Yield0.41%4.25%
Holdings10859
YTD Return+17.27%+0.72%
1Y Return+28.64%+2.69%
3Y Return (annualized)+24.88%+4.23%
5Y Return (annualized)+14.86%-
Volatility (annualized)30.6%7.2%
Max Drawdown-83.0%-8.5%
Fund FamilyInvesco (US)Franklin Templeton Investments (US)
CategoryEquityFixed Income
InceptionMar 10, 1999Jul 25, 2023

QQQ vs USFI Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and BrandywineGLOBAL - US Fixed Income ETF (USFI) is a ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +28.64% while USFI returned +2.69%. Year to date, QQQ is up 17.27% versus a gain of 0.72% for USFI.

Over three years, QQQ compounded at +24.88% per year against +4.23% for USFI. Across the full 3-year window we track, QQQ has the edge at +13.08% annualized vs +3.82%. 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 7.2% for USFI. 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 -8.5% for USFI. 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while USFI charges 0.39%. On a $10,000 position that is $18 vs $39 annually, a gap of $21 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.25% for USFI.

Holdings Overlap

0.0%overlap

QQQ and USFI share 0 holdings out of 145 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, QQQ or USFI?

QQQ has an expense ratio of 0.18% while USFI charges 0.39%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.

Which performed better, QQQ or USFI?

Over the past year QQQ returned +28.64% vs +2.69% for USFI, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.08% vs +3.82% for USFI. Past performance does not guarantee future results.

Which is riskier, QQQ or USFI?

QQQ has been the more volatile fund at 30.6% annualized versus 7.2% for USFI. Worst drawdown: QQQ -83.0% vs USFI -8.5%.

Should I hold both QQQ and USFI?

QQQ and USFI have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and USFI?

QQQ and USFI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 145 unique securities.

Which pays a higher dividend, QQQ or USFI?

QQQ yields 0.41% while USFI yields 4.25%, so USFI currently pays the higher dividend yield.

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