EFAV vs QQQ
iShares MSCI EAFE Min Vol Factor ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. EFAV offers more diversification with 250 holdings.
Side-by-Side Comparison
| Metric | EFAV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.18% | |
| AUM | $5.3B | $455.8B | |
| Dividend Yield | 3.26% | 0.41% | |
| Holdings | 278 | 108 | |
| YTD Return | +7.74% | +19.68% | |
| 1Y Return | +11.11% | +26.75% | |
| 3Y Return (annualized) | +14.39% | +26.25% | |
| 5Y Return (annualized) | +6.11% | +15.39% | |
| Volatility (annualized) | 11.2% | 30.6% | |
| Max Drawdown | -38.3% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 18, 2011 | Mar 10, 1999 |
EFAV vs QQQ Performance
iShares MSCI EAFE Min Vol Factor ETF (EFAV) 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 EFAV returned +11.11% while QQQ returned +26.75%. Year to date, EFAV is up 7.74% versus a gain of 19.68% for QQQ.
Over three years, EFAV compounded at +14.39% per year against +26.25% for QQQ; over five years the annualized figures are +6.11% and +15.39% respectively. Across the full 15-year window we track, QQQ has the edge at +13.15% annualized vs +7.10%. 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 11.2% for EFAV. 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 -38.3% for EFAV 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EFAV charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, EFAV currently yields 3.26% against 0.41% for QQQ.
Holdings Overlap
EFAV and QQQ share 3 holdings out of 350 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EFAV or QQQ?
EFAV has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, EFAV or QQQ?
Over the past year EFAV returned +11.11% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), EFAV annualized +7.10% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, EFAV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.2% for EFAV. Worst drawdown: EFAV -38.3% vs QQQ -83.0%.
Should I hold both EFAV and QQQ?
EFAV and QQQ have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFAV and QQQ?
EFAV and QQQ share 3 common holdings with a 0.4% weight overlap. Combined, they hold 350 unique securities.
Which pays a higher dividend, EFAV or QQQ?
EFAV yields 3.26% while QQQ yields 0.41%, so EFAV currently pays the higher dividend yield.
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