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DES vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

DES vs. QQQ

Last updated Jun 23, 2026

DES (WisdomTree U.S. SmallCap Dividend Fund) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - DES is a Small Cap Blend Equities fund tracking the WisdomTree SmallCap Dividend (TR), while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, DES returned 8.48%/yr vs 22.48%/yr for QQQ. A 0.65 correlation means they provide meaningful diversification when combined. DES charges 0.38%/yr vs 0.18%/yr for QQQ.

Performance

DES vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree U.S. SmallCap Dividend Fund (DES) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, DES achieves a 18.52% return, which is significantly lower than QQQ's 20.41% return. Over the past 10 years, DES has underperformed QQQ with an annualized return of 8.48%, while QQQ has yielded a comparatively higher 22.48% annualized return.

DES

1D
-0.13%
1M
2.56%
YTD
18.52%
6M
16.64%
1Y
30.08%
3Y*
15.54%
5Y*
7.29%
10Y*
8.48%

QQQ

1D
-0.25%
1M
2.96%
YTD
20.41%
6M
19.46%
1Y
40.91%
3Y*
27.47%
5Y*
16.94%
10Y*
22.48%
*Multi-year figures are annualized to reflect compound growth (CAGR)

DES vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
DES
WisdomTree U.S. SmallCap Dividend Fund		18.52%0.25%9.93%16.50%-10.96%26.51%-4.26%20.26%-12.85%8.64%
QQQ
Invesco QQQ ETF		20.41%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%32.66%

Correlation

The correlation between DES and QQQ is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.42

Correlation (3Y)
Calculated over the trailing 3-year period

0.46

Correlation (5Y)
Calculated over the trailing 5-year period

0.54

Correlation (10Y)
Calculated over the trailing 10-year period

0.52

Correlation (All Time)
Calculated using the full available price history since Jun 16, 2006

0.65

Over the past year, the correlation between DES and QQQ has dropped to 0.42 - well below their long-term average of 0.65, suggesting their price drivers have been diverging.

DES vs. QQQ - Sectors Allocation Comparison

Sectors
DES
QQQ

Financial Services

24.8%
0.2%

Consumer Cyclical

16.0%
11.4%

Industrials

13.4%
2.6%

Energy

10.2%
0.5%

Real Estate

10.1%
0.1%

Basic Materials

6.3%
1.0%

Technology

6.0%
58.7%

Utilities

4.2%
1.2%

Consumer Defensive

4.1%
6.4%

Communication Services

2.8%
14.3%

Healthcare

2.0%
3.7%

Financial Services

DES
24.8%
QQQ
0.2%

Consumer Cyclical

DES
16.0%
QQQ
11.4%

Industrials

DES
13.4%
QQQ
2.6%

Energy

DES
10.2%
QQQ
0.5%

Real Estate

DES
10.1%
QQQ
0.1%

Basic Materials

DES
6.3%
QQQ
1.0%

Technology

DES
6.0%
QQQ
58.7%

Utilities

DES
4.2%
QQQ
1.2%

Consumer Defensive

DES
4.1%
QQQ
6.4%

Communication Services

DES
2.8%
QQQ
14.3%

Healthcare

DES
2.0%
QQQ
3.7%

Compare stocks, funds, or ETFs

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WisdomTree U.S. SmallCap Dividend Fund

Invesco QQQ ETF

Often compared with DES:
DES vs. FDVVDES vs. AVUVDES vs. EESDES vs. IWNDES vs. SCHDDES vs. VBRDES vs. VXUS
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. SPMO

Return for Risk

DES vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
DES
DES Risk / Return Rank: 6262
Overall Rank
DES Sharpe Ratio Rank: 5656
Sharpe Ratio Rank
DES Sortino Ratio Rank: 6060
Sortino Ratio Rank
DES Omega Ratio Rank: 5353
Omega Ratio Rank
DES Calmar Ratio Rank: 7979
Calmar Ratio Rank
DES Martin Ratio Rank: 6464
Martin Ratio Rank
QQQ
QQQ Risk / Return Rank: 7272
Overall Rank
QQQ Sharpe Ratio Rank: 7676
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 7070
Sortino Ratio Rank
QQQ Omega Ratio Rank: 7272
Omega Ratio Rank
QQQ Calmar Ratio Rank: 7070
Calmar Ratio Rank
QQQ Martin Ratio Rank: 7171
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DES vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree U.S. SmallCap Dividend Fund (DES) and Invesco QQQ ETF (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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

DESQQQDifference
Sharpe ratioReturn per unit of total volatility
1.84
2.33

-0.49

Sortino ratioReturn per unit of downside risk
2.73
3.03

-0.30

Omega ratioGain probability vs. loss probability

1.32

1.41

-0.08

Calmar ratioReturn relative to maximum drawdown

3.95

3.44

+0.52

Martin ratioReturn relative to average drawdown

11.33

12.79

-1.46

DES vs. QQQ - Sharpe Ratio Comparison

The current DES Sharpe Ratio is 1.84, which is comparable to the QQQ Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of DES and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

DES vs. QQQ - Drawdown Comparison

The maximum DES drawdown since its inception was -65.48%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for DES and QQQ.

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Drawdown Indicators

DESQQQDifference

Max Drawdown

Largest peak-to-trough decline

-65.48%

-82.97%

+17.49%

Max Drawdown (1Y)

Largest decline over 1 year

-7.64%

-11.96%

+4.32%

Max Drawdown (3Y)

Largest decline over 3 years

-25.16%

-22.77%

-2.39%

Max Drawdown (5Y)

Largest decline over 5 years

-25.16%

-35.12%

+9.96%

Max Drawdown (10Y)

Largest decline over 10 years

-45.65%

-35.12%

-10.53%

Current Drawdown

Current decline from peak

-1.62%

-0.99%

-0.63%

Average Drawdown

Average peak-to-trough decline

-9.66%

-32.73%

+23.07%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.66%

3.21%

-0.55%

Volatility

DES vs. QQQ - Volatility Comparison

The current volatility for WisdomTree U.S. SmallCap Dividend Fund (DES) is 3.92%, while Invesco QQQ ETF (QQQ) has a volatility of 8.47%. This indicates that DES experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

DESQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.92%

8.47%

-4.55%

Volatility (6M)

Calculated over the trailing 6-month period

11.11%

14.20%

-3.09%

Volatility (1Y)

Calculated over the trailing 1-year period

16.48%

17.67%

-1.19%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.51%

22.64%

-3.13%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.98%

22.43%

-0.45%

DES vs. QQQ - Expense Ratio Comparison

DES has a 0.38% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

DES vs. QQQ - Dividend Comparison

DES's dividend yield for the trailing twelve months is around 2.33%, more than QQQ's 0.49% yield.

PositionTTM20252024202320222021202020192018201720162015
DES
WisdomTree U.S. SmallCap Dividend Fund		2.33%2.85%2.81%2.65%2.89%2.31%2.75%2.68%3.65%2.89%2.70%3.09%
QQQ
Invesco QQQ ETF		0.49%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%

Frequently Asked Questions

DES and QQQ have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QQQ has higher volatility (8.47%) compared to DES (3.92%). In terms of maximum drawdown, DES dropped -65.48% vs QQQ's -82.97%.

On 10-year performance, QQQ leads with 22.48% vs 8.48% for DES. On fees, QQQ is cheaper at 0.18% per year. On volatility, DES has been the lower-risk option at 3.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QQQ has performed better with a 22.48% return vs 8.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QQQ is cheaper with a 0.18% expense ratio, compared with 0.38% for DES.

DES has the higher dividend yield at 2.33%, compared with 0.49% for QQQ.

DES is categorized as Small Cap Blend Equities, while QQQ is Nasdaq-100. DES tracks WisdomTree SmallCap Dividend (TR), while QQQ tracks NASDAQ-100 Index. They also come from different issuers: WisdomTree and Invesco. Their fees differ too: 0.38% for DES and 0.18% for QQQ.

QQQ currently has the higher Sharpe Ratio (2.33 vs 1.84), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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