DES vs. QQQ
Compare and contrast key facts about WisdomTree U.S. SmallCap Dividend Fund (DES) and Invesco QQQ (QQQ).
DES and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. DES is a passively managed fund by WisdomTree that tracks the performance of the WisdomTree SmallCap Dividend (TR). It was launched on Jun 16, 2006. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both DES and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: DES or QQQ.
Key characteristics
| DES | QQQ | |
|---|---|---|
| YTD Return | -2.20% | 5.38% |
| 1Y Return | 16.53% | 35.44% |
| 3Y Return (Ann) | 2.00% | 8.91% |
| 5Y Return (Ann) | 5.08% | 18.53% |
| 10Y Return (Ann) | 6.48% | 18.34% |
| Sharpe Ratio | 0.97 | 2.40 |
| Daily Std Dev | 19.22% | 16.32% |
| Max Drawdown | -65.49% | -82.98% |
| Current Drawdown | -4.13% | -3.45% |
Correlation
The correlation between DES and QQQ is 0.67, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
DES vs. QQQ - Performance Comparison
In the year-to-date period, DES achieves a -2.20% return, which is significantly lower than QQQ's 5.38% return. Over the past 10 years, DES has underperformed QQQ with an annualized return of 6.48%, while QQQ has yielded a comparatively higher 18.34% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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DES vs. QQQ - Expense Ratio Comparison
DES has a 0.38% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
DES vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for WisdomTree U.S. SmallCap Dividend Fund (DES) and Invesco QQQ (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
DES vs. QQQ - Dividend Comparison
DES's dividend yield for the trailing twelve months is around 2.84%, more than QQQ's 0.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DES WisdomTree U.S. SmallCap Dividend Fund | 2.84% | 2.65% | 2.89% | 2.31% | 2.75% | 2.68% | 3.65% | 2.89% | 2.70% | 2.94% | 2.68% | 2.45% |
QQQ Invesco QQQ | 0.61% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
DES vs. QQQ - Drawdown Comparison
The maximum DES drawdown since its inception was -65.49%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for DES and QQQ. For additional features, visit the drawdowns tool.
Volatility
DES vs. QQQ - Volatility Comparison
WisdomTree U.S. SmallCap Dividend Fund (DES) and Invesco QQQ (QQQ) have volatilities of 4.96% and 5.12%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.