EFFE vs QQQ
Harbor Osmosis Emerging Markets Resource Efficient ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. EFFE delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | EFFE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.18% | |
| AUM | $146M | $496.3B | |
| Dividend Yield | 4.13% | 0.44% | |
| Holdings | 99 | 108 | |
| YTD Return | +19.97% | +19.52% | |
| 1Y Return | +27.05% | +26.68% | |
| 3Y Return (annualized) | - | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 19.4% | 30.6% | |
| Max Drawdown | -16.3% | -83.0% | |
| Fund Family | Harbor Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 17, 2024 | Mar 10, 1999 |
EFFE vs QQQ Performance
Harbor Osmosis Emerging Markets Resource Efficient ETF (EFFE) is a ETF from Harbor Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EFFE returned +27.05% while QQQ returned +26.68%. Year to date, EFFE is up 19.97% 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 19.4% for EFFE. 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 -16.3% for EFFE 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EFFE charges 0.69% per year while QQQ charges 0.18%. On a $10,000 position that is $69 vs $18 annually, a gap of $51 per year that compounds over a long holding period. On income, EFFE currently yields 4.13% against 0.44% for QQQ.
Holdings Overlap
EFFE 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, EFFE or QQQ?
EFFE has an expense ratio of 0.69% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, EFFE or QQQ?
Over the past year EFFE returned +27.05% vs +26.68% for QQQ, so EFFE leads on 1-year performance. Over the longest common window we track (2 years), EFFE annualized +27.02% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, EFFE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.4% for EFFE. Worst drawdown: EFFE -16.3% vs QQQ -83.0%.
Should I hold both EFFE and QQQ?
EFFE and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFFE and QQQ?
EFFE and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 178 unique securities.
Which pays a higher dividend, EFFE or QQQ?
EFFE yields 4.13% while QQQ yields 0.44%, so EFFE currently pays the higher dividend yield.
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