EFO vs QQQ
ProShares Ultra MSCI EAFE vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. EFO delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | EFO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.18% | |
| AUM | $29M | $455.8B | |
| Dividend Yield | 1.61% | 0.41% | |
| Holdings | 7 | 108 | |
| YTD Return | +22.23% | +18.31% | |
| 1Y Return | +39.31% | +25.37% | |
| 3Y Return (annualized) | +27.62% | +25.79% | |
| 5Y Return (annualized) | +9.12% | +15.20% | |
| Volatility (annualized) | 32.2% | 30.6% | |
| Max Drawdown | -63.7% | -83.0% | |
| Fund Family | ProShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jun 4, 2009 | Mar 10, 1999 |
EFO vs QQQ Performance
ProShares Ultra MSCI EAFE (EFO) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EFO returned +39.31% while QQQ returned +25.37%. Year to date, EFO is up 22.23% versus a gain of 18.31% for QQQ.
Over three years, EFO compounded at +27.62% per year against +25.79% for QQQ; over five years the annualized figures are +9.12% and +15.20% respectively. Across the full 17-year window we track, QQQ has the edge at +13.10% annualized vs +9.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EFO has been the more volatile fund, with annualized monthly volatility of 32.2% compared with 30.6% for QQQ. 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 -63.7% for EFO 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
EFO charges 0.95% per year while QQQ charges 0.18%. On a $10,000 position that is $95 vs $18 annually, a gap of $77 per year that compounds over a long holding period. On income, EFO currently yields 1.61% against 0.41% for QQQ.
Holdings Overlap
EFO and QQQ share 0 holdings out of 104 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, EFO or QQQ?
EFO has an expense ratio of 0.95% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, EFO or QQQ?
Over the past year EFO returned +39.31% vs +25.37% for QQQ, so EFO leads on 1-year performance. Over the longest common window we track (17 years), EFO annualized +9.01% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, EFO or QQQ?
EFO has been the more volatile fund at 32.2% annualized versus 30.6% for QQQ. Worst drawdown: EFO -63.7% vs QQQ -83.0%.
Should I hold both EFO and QQQ?
EFO 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 EFO and QQQ?
EFO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, EFO or QQQ?
EFO yields 1.61% while QQQ yields 0.41%, so EFO currently pays the higher dividend yield.
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