QQQ vs WEA
QQQ vs WEA
Invesco QQQ Trust, Series 1 vs Western Asset Premier Bond Fund
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. WEA offers more diversification with 246 holdings.
Side-by-Side Comparison
| Metric | QQQ | WEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.22% | |
| AUM | $455.8B | $132M | |
| Dividend Yield | 0.41% | 7.44% | |
| Holdings | 108 | 386 | |
| YTD Return | +12.48% | -1.89% | |
| 1Y Return | +22.35% | +4.16% | |
| 3Y Return (annualized) | +22.30% | +6.23% | |
| 5Y Return (annualized) | +14.24% | +0.55% | |
| Volatility (annualized) | 30.6% | 15.8% | |
| Max Drawdown | -83.0% | -64.9% | |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Mar 28, 2002 |
QQQ vs WEA Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Western Asset Premier Bond Fund (WEA) is a ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +22.35% while WEA returned +4.16%. Year to date, QQQ is up 12.48% versus a loss of 1.89% for WEA.
Over three years, QQQ compounded at +22.30% per year against +6.23% for WEA; over five years the annualized figures are +14.24% and +0.55% respectively. Across the full 24-year window we track, QQQ has the edge at +12.91% annualized vs +0.15%. 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 15.8% for WEA. 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 -64.9% for WEA. 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while WEA charges 1.22%. On a $10,000 position that is $18 vs $122 annually, a gap of $104 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 7.44% for WEA.
Holdings Overlap
QQQ and WEA share 0 holdings out of 349 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 WEA?
QQQ has an expense ratio of 0.18% while WEA charges 1.22%. QQQ is the cheaper option. On a $10,000 investment, that is $104 per year of difference.
Which performed better, QQQ or WEA?
Over the past year QQQ returned +22.35% vs +4.16% for WEA, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), QQQ annualized +12.91% vs +0.15% for WEA. Past performance does not guarantee future results.
Which is riskier, QQQ or WEA?
QQQ has been the more volatile fund at 30.6% annualized versus 15.8% for WEA. Worst drawdown: QQQ -83.0% vs WEA -64.9%.
Should I hold both QQQ and WEA?
QQQ and WEA have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and WEA?
QQQ and WEA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 349 unique securities.
Which pays a higher dividend, QQQ or WEA?
QQQ yields 0.41% while WEA yields 7.44%, so WEA currently pays the higher dividend yield.
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