QQQ vs UMMA
Invesco QQQ Trust, Series 1 vs Wahed Dow Jones Islamic World ETF
Which is better, QQQ or UMMA?
Large Cap Growth against Large Cap Blend.
QQQ has a lower expense ratio. QQQ led over 3Y and the full window, UMMA over 1Y. UMMA is less concentrated, with 42.3% 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 | QQQ | UMMA |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.65% |
| AUM | $506.1B | $299M |
| Dividend Yield | 0.42% | 0.76% |
| Holdings | 321 | 191 |
| YTD Return | +19.30%Best | +18.98% |
| 1Y Return | +22.47% | +27.58%Best |
| 3Y Return (annualized) | +26.18%Best | +22.01% |
| 5Y Return (annualized) | +15.42% | - |
| Volatility (annualized) | 20.7% | 20.5%Best |
| Max Drawdown | -32.4%Best | -34.2% |
| $10,000 over 4.8 years | $19,838Best | $15,057 |
| Top 10 Weight | 46.7% | 42.3%Best |
| Fund Family | Invesco (US) | Wahed Invest |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Jan 6, 2022 |
Volatility and max drawdown, and the $10,000 over 4.8 years row, are measured over the window both funds cover: Jan 7, 2022 to Oct 14, 2026 (4.8 years).
QQQ vs UMMA 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 4.8 years both funds cover.
QQQ vs UMMA Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Wahed Dow Jones Islamic World ETF (UMMA) is an ETF from Wahed Invest. Over the past year QQQ returned +22.47% while UMMA returned +27.58%. Year to date, QQQ is up 19.30% versus a gain of 18.98% for UMMA.
Over three years, QQQ compounded at +26.18% per year against +22.01% for UMMA.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.7% compared with 20.5% for UMMA. 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 -32.4% for QQQ and -34.2% for UMMA. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while UMMA charges 0.65%. On a $10,000 position that is $18 vs $65 annually, a gap of $47 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 0.76% for UMMA.
Holdings Overlap
1.5% of QQQ's money is in holdings UMMA also owns. 6.1% of UMMA's money is in holdings QQQ also owns.
UMMA and QQQ share little of their money.
2 positions in common, counted across the 101 positions we hold weights for in QQQ and 92 in UMMA, against full books of 321 and 191.
What only one of them owns
Our book lists 1 positions for UMMA that do not appear in our book for QQQ (0.4% of the fund), and 93 for QQQ that do not appear in UMMA (96.3%).
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 QQQ and UMMA 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, QQQ or UMMA?
QQQ has an expense ratio of 0.18% while UMMA charges 0.65%. QQQ is the cheaper option, by $47 a year on a $10,000 investment.
Which performed better, QQQ or UMMA?
Over the past year QQQ returned +22.47% vs +27.58% for UMMA, so UMMA leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or UMMA?
QQQ has been the more volatile fund at 20.7% annualized versus 20.5% for UMMA. Worst drawdown: QQQ -32.4% vs UMMA -34.2%.
Should I hold both QQQ and UMMA?
QQQ and UMMA have a monthly-return correlation of 0.78, 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 QQQ and UMMA?
6.1% of UMMA's money is in holdings QQQ also owns. 6.1% of UMMA's is in holdings QQQ also owns. They hold 2 positions in common, counted across the 101 positions we hold weights for in QQQ and 92 in UMMA.
Which pays a higher dividend, QQQ or UMMA?
QQQ yields 0.42% while UMMA yields 0.76%, so UMMA currently pays the higher dividend yield.
Is UMMA better than QQQ?
QQQ has a lower expense ratio. QQQ led over 3Y and the full window, UMMA over 1Y. UMMA is less concentrated, with 42.3% 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.