AAXJ vs QQQ
iShares MSCI All Country Asia ex Japan ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. AAXJ delivered stronger 1-year returns. AAXJ offers more diversification with 956 holdings.
Side-by-Side Comparison
| Metric | AAXJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.18% | |
| AUM | $3.9B | $496.3B | |
| Dividend Yield | 1.41% | 0.44% | |
| Holdings | 956 | 108 | |
| YTD Return | +21.56% | +16.64% | |
| 1Y Return | +38.09% | +27.27% | |
| 3Y Return (annualized) | +24.43% | +25.96% | |
| 5Y Return (annualized) | +8.44% | +14.54% | |
| Volatility (annualized) | 20.5% | 30.6% | |
| Max Drawdown | -49.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 13, 2008 | Mar 10, 1999 |
AAXJ vs QQQ Performance
iShares MSCI All Country Asia ex Japan ETF (AAXJ) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AAXJ returned +38.09% while QQQ returned +27.27%. Year to date, AAXJ is up 21.56% versus a gain of 16.64% for QQQ.
Over three years, AAXJ compounded at +24.43% per year against +25.96% for QQQ; over five years the annualized figures are +8.44% and +14.54% respectively. Across the full 18-year window we track, QQQ has the edge at +13.03% annualized vs +5.35%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 20.5% for AAXJ. 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 -49.4% for AAXJ and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AAXJ charges 0.72% per year while QQQ charges 0.18%. On a $10,000 position that is $72 vs $18 annually, a gap of $54 per year that compounds over a long holding period. On income, AAXJ currently yields 1.41% against 0.44% for QQQ.
Holdings Overlap
AAXJ and QQQ share 1 holdings out of 921 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in AAXJ | Weight in QQQ | Difference |
|---|---|---|---|
| PDD:IE | 0.43% | 0.27% | 0.16% |
Frequently Asked Questions
Which is cheaper, AAXJ or QQQ?
AAXJ has an expense ratio of 0.72% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, AAXJ or QQQ?
Over the past year AAXJ returned +38.09% vs +27.27% for QQQ, so AAXJ leads on 1-year performance. Over the longest common window we track (18 years), AAXJ annualized +5.35% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, AAXJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.5% for AAXJ. Worst drawdown: AAXJ -49.4% vs QQQ -83.0%.
Should I hold both AAXJ and QQQ?
AAXJ and QQQ have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AAXJ and QQQ?
AAXJ and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 921 unique securities.
Which pays a higher dividend, AAXJ or QQQ?
AAXJ yields 1.41% while QQQ yields 0.44%, so AAXJ currently pays the higher dividend yield.
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