EFZ vs QQQ
ProShares Short MSCI EAFE vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | EFZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.18% | |
| AUM | $10M | $496.3B | |
| Dividend Yield | 4.03% | 0.44% | |
| Holdings | 6 | 108 | |
| YTD Return | -11.02% | +19.52% | |
| 1Y Return | -15.73% | +26.68% | |
| 3Y Return (annualized) | -12.21% | +26.64% | |
| 5Y Return (annualized) | -6.40% | +15.36% | |
| Volatility (annualized) | 17.5% | 30.6% | |
| Max Drawdown | -90.3% | -83.0% | |
| Fund Family | ProShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 23, 2007 | Mar 10, 1999 |
EFZ vs QQQ Performance
ProShares Short MSCI EAFE (EFZ) is a ETF from ProShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EFZ returned -15.73% while QQQ returned +26.68%. Year to date, EFZ is down 11.02% versus a gain of 19.52% for QQQ.
Over three years, EFZ compounded at -12.21% per year against +26.64% for QQQ; over five years the annualized figures are -6.40% and +15.36% respectively. Across the full 19-year window we track, QQQ has the edge at +13.14% annualized vs -8.64%. 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 17.5% for EFZ. 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 -90.3% for EFZ 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 -0.72. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EFZ 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, EFZ currently yields 4.03% against 0.44% for QQQ.
Holdings Overlap
EFZ and QQQ share 0 holdings out of 103 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, EFZ or QQQ?
EFZ 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, EFZ or QQQ?
Over the past year EFZ returned -15.73% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), EFZ annualized -8.64% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, EFZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.5% for EFZ. Worst drawdown: EFZ -90.3% vs QQQ -83.0%.
Should I hold both EFZ and QQQ?
EFZ and QQQ have a monthly-return correlation of -0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFZ and QQQ?
EFZ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, EFZ or QQQ?
EFZ yields 4.03% while QQQ yields 0.44%, so EFZ currently pays the higher dividend yield.
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