QQQ vs WDI
Invesco QQQ Trust, Series 1 vs Western Asset Diversified Income Fund
Which is better, QQQ or WDI?
Large Cap Growth against Diversified Sectoral Bond.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
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 | WDI |
|---|---|---|
| Expense Ratio | 0.18%Best | 1.82% |
| AUM | $506.1B | $722M |
| Dividend Yield | 0.42% | 12.77% |
| Holdings | 321 | 410 |
| YTD Return | +19.14%Best | -6.69% |
| 1Y Return | +21.45%Best | -9.64% |
| 3Y Return (annualized) | +26.10%Best | +9.80% |
| 5Y Return (annualized) | +15.25%Best | +0.96% |
| Volatility (annualized) | 20.5% | 14.1%Best |
| Max Drawdown | -35.1% | -32.5%Best |
| $10,000 over 5 years | $20,333Best | $10,489 |
| Fund Family | Invesco (US) | Franklin Templeton Investments (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Growth | Diversified Sectoral Bond |
| Inception | Mar 10, 1999 | Jun 24, 2021 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 25, 2021 to Oct 15, 2026 (5.3 years).
QQQ vs WDI 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 5.3 years both funds cover.
QQQ vs WDI Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and Western Asset Diversified Income Fund (WDI) is an ETF from Franklin Templeton Investments (US). Over the past year QQQ returned +21.45% while WDI returned -9.64%. Year to date, QQQ is up 19.14% versus a loss of 6.69% for WDI.
Over three years, QQQ compounded at +26.10% per year against +9.80% for WDI; over five years the annualized figures are +15.25% and +0.96% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.5% compared with 14.1% for WDI. 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 -35.1% for QQQ and -32.5% for WDI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
Fees and Cost Over Time
QQQ charges 0.18% per year while WDI charges 1.82%. On a $10,000 position that is $18 vs $182 annually, a gap of $164 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 12.77% for WDI.
Holdings Overlap
We hold position weights for 101 holdings in QQQ and 192 in WDI, totalling 99.6% and 79.1% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 274 days apart, QQQ as of Oct 1, 2026 and WDI as of Dec 31, 2025, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 101 positions we hold weights for in QQQ and 192 in WDI, against full books of 321 and 410.
You are not choosing between two funds in isolation.
Whichever of QQQ and WDI 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 WDI?
QQQ has an expense ratio of 0.18% while WDI charges 1.82%. QQQ is the cheaper option, by $164 a year on a $10,000 investment.
Which performed better, QQQ or WDI?
Over the past year QQQ returned +21.45% vs -9.64% for WDI, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or WDI?
QQQ has been the more volatile fund at 20.5% annualized versus 14.1% for WDI. Worst drawdown: QQQ -35.1% vs WDI -32.5%.
Should I hold both QQQ and WDI?
QQQ and WDI have a monthly-return correlation of 0.59, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or WDI?
QQQ yields 0.42% while WDI yields 12.77%, so WDI currently pays the higher dividend yield.
Is WDI better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.