DEFI vs QQQ
Hashdex Bitcoin ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | DEFI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $9M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 3 | 108 | |
| YTD Return | -28.65% | +16.23% | |
| 1Y Return | -44.61% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 51.5% | 30.6% | |
| Max Drawdown | -53.2% | -83.0% | |
| Fund Family | Hashdex | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 15, 2022 | Mar 10, 1999 |
DEFI vs QQQ Performance
Hashdex Bitcoin ETF (DEFI) is a ETF from Hashdex and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DEFI returned -44.61% while QQQ returned +26.23%. Year to date, DEFI is down 28.65% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
DEFI has been the more volatile fund, with annualized monthly volatility of 51.5% compared with 30.6% for QQQ. 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 -53.2% for DEFI 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DEFI charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, DEFI currently yields 0.00% against 0.44% for QQQ.
Frequently Asked Questions
Which is cheaper, DEFI or QQQ?
DEFI has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, DEFI or QQQ?
Over the past year DEFI returned -44.61% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), DEFI annualized +14.12% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, DEFI or QQQ?
DEFI has been the more volatile fund at 51.5% annualized versus 30.6% for QQQ. Worst drawdown: DEFI -53.2% vs QQQ -83.0%.
Should I hold both DEFI and QQQ?
DEFI and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, DEFI or QQQ?
DEFI yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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