^DJI vs. QQQ
Compare and contrast key facts about Dow Jones Industrial Average (^DJI) and Invesco QQQ (QQQ).
QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: ^DJI or QQQ.
Key characteristics
^DJI | QQQ | |
---|---|---|
YTD Return | 7.05% | 9.88% |
1Y Return | 16.94% | 21.43% |
3Y Return (Ann) | 4.76% | 6.20% |
5Y Return (Ann) | 8.54% | 19.38% |
10Y Return (Ann) | 9.04% | 17.28% |
Sharpe Ratio | 1.60 | 1.16 |
Daily Std Dev | 10.74% | 17.67% |
Max Drawdown | -53.78% | -82.98% |
Current Drawdown | -2.93% | -10.79% |
Correlation
The correlation between ^DJI and QQQ is 0.74, 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.
Performance
^DJI vs. QQQ - Performance Comparison
In the year-to-date period, ^DJI achieves a 7.05% return, which is significantly lower than QQQ's 9.88% return. Over the past 10 years, ^DJI has underperformed QQQ with an annualized return of 9.04%, while QQQ has yielded a comparatively higher 17.28% 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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Risk-Adjusted Performance
^DJI vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Dow Jones Industrial Average (^DJI) 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.
Drawdowns
^DJI vs. QQQ - Drawdown Comparison
The maximum ^DJI drawdown since its inception was -53.78%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for ^DJI and QQQ. For additional features, visit the drawdowns tool.
Volatility
^DJI vs. QQQ - Volatility Comparison
The current volatility for Dow Jones Industrial Average (^DJI) is 3.57%, while Invesco QQQ (QQQ) has a volatility of 7.07%. This indicates that ^DJI 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.