USMC vs. QQQ
Compare and contrast key facts about Principal U.S. Mega-Cap ETF (USMC) and Invesco QQQ (QQQ).
USMC and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. USMC is a passively managed fund by Principal that tracks the performance of the Nasdaq US Mega Cap Select Leaders Index. It was launched on Oct 12, 2017. 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 USMC 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: USMC or QQQ.
Performance
USMC vs. QQQ - Performance Comparison
Returns By Period
In the year-to-date period, USMC achieves a 25.97% return, which is significantly higher than QQQ's 21.78% return.
USMC
25.97%
1.85%
12.84%
32.61%
15.86%
N/A
QQQ
21.78%
1.15%
10.25%
29.54%
20.42%
17.95%
Key characteristics
| USMC | QQQ | |
|---|---|---|
| Sharpe Ratio | 2.67 | 1.70 |
| Sortino Ratio | 3.58 | 2.29 |
| Omega Ratio | 1.50 | 1.31 |
| Calmar Ratio | 3.86 | 2.19 |
| Martin Ratio | 17.43 | 7.96 |
| Ulcer Index | 1.86% | 3.72% |
| Daily Std Dev | 12.13% | 17.39% |
| Max Drawdown | -29.97% | -82.98% |
| Current Drawdown | -2.03% | -3.42% |
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USMC vs. QQQ - Expense Ratio Comparison
USMC has a 0.12% expense ratio, which is lower than QQQ's 0.20% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Correlation
The correlation between USMC and QQQ is 0.86, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Risk-Adjusted Performance
USMC vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Principal U.S. Mega-Cap ETF (USMC) 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
USMC vs. QQQ - Dividend Comparison
USMC's dividend yield for the trailing twelve months is around 1.12%, more than QQQ's 0.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
USMC Principal U.S. Mega-Cap ETF | 1.12% | 1.35% | 1.78% | 1.53% | 1.56% | 2.04% | 2.27% | 0.24% | 0.00% | 0.00% | 0.00% | 0.00% |
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% | 1.02% |
Drawdowns
USMC vs. QQQ - Drawdown Comparison
The maximum USMC drawdown since its inception was -29.97%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for USMC and QQQ. For additional features, visit the drawdowns tool.
Volatility
USMC vs. QQQ - Volatility Comparison
The current volatility for Principal U.S. Mega-Cap ETF (USMC) is 3.98%, while Invesco QQQ (QQQ) has a volatility of 5.62%. This indicates that USMC 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.