TDG vs. QQQ

Last updated Jun 4, 2026

TDG (TransDigm Group Incorporated) is a stock, while QQQ (Invesco QQQ ETF) is Nasdaq-100 fund tracking the NASDAQ-100 Index. Over the past 10 years, TDG returned 22.05%/yr vs 21.94%/yr for QQQ. At a 0.50 correlation, their price movements are largely independent.

Performance

TDG vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in TransDigm Group Incorporated (TDG) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TDG achieves a -8.89% return, which is significantly lower than QQQ's 21.30% return. Both investments have delivered pretty close results over the past 10 years, with TDG having a 22.05% annualized return and QQQ not far behind at 21.94%.

TDG

• 1D: -2.84%
• 1M: 5.38%
• YTD: -8.89%
• 6M: -9.40%
• 1Y: -11.06%
• 3Y*: 21.32%
• 5Y*: 16.99%
• 10Y*: 22.05%

QQQ

• 1D: -0.26%
• 1M: 10.60%
• YTD: 21.30%
• 6M: 19.66%
• 1Y: 41.82%
• 3Y*: 28.78%
• 5Y*: 17.97%
• 10Y*: 21.94%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TDG vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TDG TransDigm Group Incorporated	-8.89%	12.15%	32.27%	66.57%	1.77%	2.82%	10.51%	84.41%	23.83%	19.84%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between TDG and QQQ is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.22
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Mar 16, 2006	0.50

Over the past year, the correlation between TDG and QQQ has dropped to 0.22 - well below their long-term average of 0.50, suggesting their price drivers have been diverging.

Return for Risk

TDG vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TDG

TDG Risk / Return Rank: 24
TDG Sharpe Ratio Rank: 23
TDG Sortino Ratio Rank: 22
TDG Omega Ratio Rank: 21
TDG Calmar Ratio Rank: 26
TDG Martin Ratio Rank: 26

QQQ

QQQ Risk / Return Rank: 73
QQQ Sharpe Ratio Rank: 79
QQQ Sortino Ratio Rank: 75
QQQ Omega Ratio Rank: 74
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 71

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.

TDG vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for TransDigm Group Incorporated (TDG) 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.

	TDG	QQQ	Difference
Sharpe ratio Return per unit of total volatility	-0.40	2.64	-3.04
Sortino ratio Return per unit of downside risk	-0.36	3.45	-3.81
Omega ratio Gain probability vs. loss probability	0.95	1.45	-0.50
Calmar ratio Return relative to maximum drawdown	-0.44	3.51	-3.95
Martin ratio Return relative to average drawdown	-0.77	13.49	-14.26
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TDG vs. QQQ - Sharpe Ratio Comparison

The current TDG Sharpe Ratio is -0.40, which is lower than the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of TDG 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.

Sharpe Ratios by Period

	TDG	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.40	2.64	-3.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.61	0.81	-0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.66	0.99	-0.33
Sharpe Ratio (All Time) Calculated using the full available price history	0.85	0.41	+0.44

Drawdowns

TDG vs. QQQ - Drawdown Comparison

The maximum TDG drawdown since its inception was -62.64%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for TDG and QQQ.

Drawdown Indicators

	TDG	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-62.64%	-82.97%	+20.33%
Max Drawdown (1Y) Largest decline over 1 year	-25.30%	-11.96%	-13.34%
Max Drawdown (3Y) Largest decline over 3 years	-25.30%	-22.77%	-2.53%
Max Drawdown (5Y) Largest decline over 5 years	-25.30%	-35.12%	+9.82%
Max Drawdown (10Y) Largest decline over 10 years	-62.64%	-35.12%	-27.52%
Current Drawdown Current decline from peak	-20.11%	-0.26%	-19.85%
Average Drawdown Average peak-to-trough decline	-7.94%	-32.79%	+24.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.43%	3.11%	+11.32%

Volatility

TDG vs. QQQ - Volatility Comparison

TransDigm Group Incorporated (TDG) has a higher volatility of 8.66% compared to Invesco QQQ ETF (QQQ) at 4.49%. This indicates that TDG's price experiences larger fluctuations and is considered to be riskier than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TDG	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.66%	4.49%	+4.17%
Volatility (6M) Calculated over the trailing 6-month period	20.86%	12.10%	+8.76%
Volatility (1Y) Calculated over the trailing 1-year period	27.45%	15.94%	+11.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.78%	22.38%	+5.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.76%	22.29%	+11.47%

Dividends

TDG vs. QQQ - Dividend Comparison

TDG's dividend yield for the trailing twelve months is around 7.43%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQ Invesco QQQ ETF	0.38%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%
TDG TransDigm Group Incorporated	7.43%	6.77%	5.92%	3.46%	2.94%	0.00%	0.00%	11.16%	0.00%	8.01%	9.64%	0.00%

Frequently Asked Questions

Can I hold both TDG and QQQ in my portfolio?

TDG and QQQ have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TDG or QQQ?

TDG has higher volatility (8.66%) compared to QQQ (4.49%). In terms of maximum drawdown, TDG dropped -62.64% vs QQQ's -82.97%.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.64 vs -0.40), 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.