EDV vs QQQ
Vanguard Extended Duration Treasury ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
EDV has a lower expense ratio. QQQ delivered stronger 1-year returns. EDV offers more diversification with 163 holdings.
Side-by-Side Comparison
| Metric | EDV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.18% | |
| AUM | $3.4B | $496.3B | |
| Dividend Yield | 5.42% | 0.44% | |
| Holdings | 163 | 108 | |
| YTD Return | -5.87% | +16.64% | |
| 1Y Return | -3.54% | +27.27% | |
| 3Y Return (annualized) | -3.66% | +25.96% | |
| 5Y Return (annualized) | -13.05% | +14.54% | |
| Volatility (annualized) | 21.8% | 30.6% | |
| Max Drawdown | -62.0% | -83.0% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 6, 2007 | Mar 10, 1999 |
EDV vs QQQ Performance
Vanguard Extended Duration Treasury ETF (EDV) is a ETF from Vanguard (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EDV returned -3.54% while QQQ returned +27.27%. Year to date, EDV is down 5.87% versus a gain of 16.64% for QQQ.
Over three years, EDV compounded at -3.66% per year against +25.96% for QQQ; over five years the annualized figures are -13.05% and +14.54% respectively. Across the full 19-year window we track, QQQ has the edge at +13.03% annualized vs -1.49%. 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 21.8% for EDV. 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 -62.0% for EDV 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 -0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EDV charges 0.05% per year while QQQ charges 0.18%. On a $10,000 position that is $5 vs $18 annually, a gap of $13 per year that compounds over a long holding period. On income, EDV currently yields 5.42% against 0.44% for QQQ.
Holdings Overlap
EDV and QQQ share 0 holdings out of 178 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EDV or QQQ?
EDV has an expense ratio of 0.05% while QQQ charges 0.18%. EDV is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, EDV or QQQ?
Over the past year EDV returned -3.54% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), EDV annualized -1.49% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, EDV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.8% for EDV. Worst drawdown: EDV -62.0% vs QQQ -83.0%.
Should I hold both EDV and QQQ?
EDV and QQQ have a monthly-return correlation of -0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EDV and QQQ?
EDV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 178 unique securities.
Which pays a higher dividend, EDV or QQQ?
EDV yields 5.42% while QQQ yields 0.44%, so EDV currently pays the higher dividend yield.
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