HWSM vs QQQ
Hotchkis & Wiley SMID Cap Diversified Value Fund ETF vs Invesco QQQ Trust, Series 1
Which is better, HWSM or QQQ?
Mid Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. HWSM is less concentrated, with 14.7% of the fund in its ten largest positions against 46.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | HWSM | QQQ |
|---|---|---|
| Expense Ratio | 0.55% | 0.18%Best |
| AUM | $3M | $506.1B |
| Dividend Yield | 1.22% | 0.42% |
| Holdings | 332 | 321 |
| YTD Return | +10.33% | +19.30%Best |
| 1Y Return | +14.89% | +22.47%Best |
| 3Y Return (annualized) | - | +26.18% |
| 5Y Return (annualized) | - | +15.42% |
| Volatility (annualized) | 13.1%Best | 18.8% |
| Max Drawdown | -15.7% | -12.6%Best |
| $10,000 over 1.5 years | $12,363 | $15,479Best |
| Top 10 Weight | 14.7%Best | 46.7% |
| Fund Family | Hotchkis & Wiley Funds | Invesco (US) |
| Category | Equity | Equity |
| Style | Mid Cap Value | Large Cap Growth |
| Inception | Mar 31, 2025 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 1.5 years row, are measured over the window both funds cover: Mar 31, 2025 to Oct 14, 2026 (1.5 years).
HWSM vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.5 years both funds cover.
HWSM vs QQQ Performance
Hotchkis & Wiley SMID Cap Diversified Value Fund ETF (HWSM) is an ETF from Hotchkis & Wiley Funds and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year HWSM returned +14.89% while QQQ returned +22.47%. Year to date, HWSM is up 10.33% versus a gain of 19.30% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 13.1% for HWSM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -15.7% for HWSM and -12.6% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.26. They move largely independently of each other.
Fees and Cost Over Time
HWSM charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, HWSM currently yields 1.22% against 0.42% for QQQ.
Holdings Overlap
4.5% of HWSM's money is in holdings QQQ also owns. 0.5% of QQQ's money is in holdings HWSM also owns.
HWSM and QQQ share little of their money.
3 positions in common, counted across the 174 positions we hold weights for in HWSM and 101 in QQQ, against full books of 332 and 321.
What only one of them owns
Our book lists 90 positions for QQQ that do not appear in our book for HWSM (95.8% of the fund), and 168 for HWSM that do not appear in QQQ (93.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of HWSM and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HWSM or QQQ?
HWSM has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option, by $37 a year on a $10,000 investment.
Which performed better, HWSM or QQQ?
Over the past year HWSM returned +14.89% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), HWSM annualized +15.19% vs +33.81% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HWSM or QQQ?
QQQ has been the more volatile fund at 18.8% annualized versus 13.1% for HWSM. Worst drawdown: HWSM -15.7% vs QQQ -12.6%.
Should I hold both HWSM and QQQ?
HWSM and QQQ have a monthly-return correlation of 0.26, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between HWSM and QQQ?
4.5% of HWSM's money is in holdings QQQ also owns. 0.5% of QQQ's is in holdings HWSM also owns. They hold 3 positions in common, counted across the 174 positions we hold weights for in HWSM and 101 in QQQ.
Which pays a higher dividend, HWSM or QQQ?
HWSM yields 1.22% while QQQ yields 0.42%, so HWSM currently pays the higher dividend yield.
Is QQQ better than HWSM?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. HWSM is less concentrated, with 14.7% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.