QQQ vs WABF
QQQ vs WABF
Invesco QQQ Trust, Series 1 vs Western Asset Bond ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. WABF offers more diversification with 289 holdings.
Side-by-Side Comparison
| Metric | QQQ | WABF | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $455.8B | $16M | |
| Dividend Yield | 0.41% | 5.01% | |
| Holdings | 108 | 449 | |
| YTD Return | +18.20% | -0.63% | |
| 1Y Return | +27.63% | +1.93% | |
| 3Y Return (annualized) | +25.54% | +5.27% | |
| 5Y Return (annualized) | +15.12% | - | |
| Volatility (annualized) | 30.6% | 6.5% | |
| Max Drawdown | -83.0% | -5.4% | |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Sep 19, 2023 |
QQQ vs WABF Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Western Asset Bond ETF (WABF) is a ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +27.63% while WABF returned +1.93%. Year to date, QQQ is up 18.20% versus a loss of 0.63% for WABF.
Over three years, QQQ compounded at +25.54% per year against +5.27% for WABF. Across the full 3-year window we track, QQQ has the edge at +13.11% annualized vs +5.27%. 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 6.5% for WABF. 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 -5.4% for WABF. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while WABF charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 5.01% for WABF.
Holdings Overlap
QQQ and WABF share 0 holdings out of 392 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 WABF?
QQQ has an expense ratio of 0.18% while WABF charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, QQQ or WABF?
Over the past year QQQ returned +27.63% vs +1.93% for WABF, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.11% vs +5.27% for WABF. Past performance does not guarantee future results.
Which is riskier, QQQ or WABF?
QQQ has been the more volatile fund at 30.6% annualized versus 6.5% for WABF. Worst drawdown: QQQ -83.0% vs WABF -5.4%.
Should I hold both QQQ and WABF?
QQQ and WABF have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and WABF?
QQQ and WABF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 392 unique securities.
Which pays a higher dividend, QQQ or WABF?
QQQ yields 0.41% while WABF yields 5.01%, so WABF currently pays the higher dividend yield.
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