EFAA vs QQQ
Invesco MSCI EAFE Income Advantage ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. EFAA offers more diversification with 708 holdings.
Side-by-Side Comparison
| Metric | EFAA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $644M | $496.3B | |
| Dividend Yield | 8.11% | 0.44% | |
| Holdings | 708 | 108 | |
| YTD Return | +10.74% | +19.52% | |
| 1Y Return | +18.70% | +26.68% | |
| 3Y Return (annualized) | - | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 8.4% | 30.6% | |
| Max Drawdown | -12.0% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 17, 2024 | Mar 10, 1999 |
EFAA vs QQQ Performance
Invesco MSCI EAFE Income Advantage ETF (EFAA) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EFAA returned +18.70% while QQQ returned +26.68%. Year to date, EFAA is up 10.74% versus a gain of 19.52% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 8.4% for EFAA. 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 -12.0% for EFAA 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EFAA charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, EFAA currently yields 8.11% against 0.44% for QQQ.
Holdings Overlap
EFAA and QQQ share 3 holdings out of 739 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EFAA or QQQ?
EFAA has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, EFAA or QQQ?
Over the past year EFAA returned +18.70% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), EFAA annualized +15.82% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, EFAA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.4% for EFAA. Worst drawdown: EFAA -12.0% vs QQQ -83.0%.
Should I hold both EFAA and QQQ?
EFAA and QQQ have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFAA and QQQ?
EFAA and QQQ share 3 common holdings with a 1.0% weight overlap. Combined, they hold 739 unique securities.
Which pays a higher dividend, EFAA or QQQ?
EFAA yields 8.11% while QQQ yields 0.44%, so EFAA currently pays the higher dividend yield.
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