ECAT vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. ECAT offers more diversification with 550 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: ECAT

Side-by-Side Comparison

MetricECATQQQWinner
Expense Ratio1.43%0.18%
AUM$1.5B$455.8B
Dividend Yield21.30%0.41%
Holdings1,008108
YTD Return+14.41%+18.20%
1Y Return+18.22%+27.63%
3Y Return (annualized)+20.35%+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)17.7%30.6%
Max Drawdown-32.2%-83.0%
Fund FamilyBlackRock, Inc. (US)Invesco (US)
CategoryAllocation/BalancedEquity
InceptionSep 28, 2021Mar 10, 1999

ECAT vs QQQ Performance

BlackRock ESG Capital Allocation Term Trust (ECAT) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ECAT returned +18.22% while QQQ returned +27.63%. Year to date, ECAT is up 14.41% versus a gain of 18.20% for QQQ.

Over three years, ECAT compounded at +20.35% per year against +25.54% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.11% annualized vs +9.76%. 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 17.7% for ECAT. 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 -32.2% for ECAT 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 0.84. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

ECAT charges 1.43% per year while QQQ charges 0.18%. On a $10,000 position that is $143 vs $18 annually, a gap of $125 per year that compounds over a long holding period. On income, ECAT currently yields 21.30% against 0.41% for QQQ.

Holdings Overlap

26.0%overlap

ECAT and QQQ share 30 holdings out of 623 unique holdings combined, representing a 26.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in ECATWeight in QQQDifference
NVDA4.02%7.88%3.86%
AAPL2.61%7.46%4.85%
MSFT3.85%4.65%0.80%
GOOGProProPro
MUProProPro
AMZNProProPro
AVGOProProPro
METAProProPro
TSLAProProPro
AMDProProPro
See all 10 holdings ECAT shares with QQQ
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, ECAT or QQQ?

ECAT has an expense ratio of 1.43% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $125 per year of difference.

Which performed better, ECAT or QQQ?

Over the past year ECAT returned +18.22% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), ECAT annualized +9.76% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, ECAT or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 17.7% for ECAT. Worst drawdown: ECAT -32.2% vs QQQ -83.0%.

Should I hold both ECAT and QQQ?

ECAT and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ECAT and QQQ?

ECAT and QQQ share 30 common holdings with a 26.0% weight overlap. Combined, they hold 623 unique securities.

Which pays a higher dividend, ECAT or QQQ?

ECAT yields 21.30% while QQQ yields 0.41%, so ECAT currently pays the higher dividend yield.

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