ESG vs QQQ
Northern Trust STOXX US ESG Select ETF vs Invesco QQQ Trust, Series 1
Which is better, ESG or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. ESG is less concentrated, with 41.5% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | ESG | QQQ |
|---|---|---|
| Expense Ratio | 0.32% | 0.18%Best |
| AUM | $137M | $486.1B |
| Dividend Yield | 0.87% | 0.44% |
| Holdings | 254 | 107 |
| YTD Return | +15.35% | +17.54%Best |
| 1Y Return | +20.82% | +25.59%Best |
| 3Y Return (annualized) | +19.39% | +24.63%Best |
| 5Y Return (annualized) | +11.68% | +14.18%Best |
| Volatility (annualized) | 17.4%Best | 18.9% |
| Max Drawdown | -32.5%Best | -35.1% |
| $10,000 over 5 years | $17,373 | $19,407Best |
| Top 10 Weight | 41.5%Best | 46.5% |
| Fund Family | Northern Trust Asset Management | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Jul 13, 2016 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jul 14, 2016 to Sep 4, 2026 (10.1 years).
ESG vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.1 years both funds cover.
ESG vs QQQ Performance
Northern Trust STOXX US ESG Select ETF (ESG) is an ETF from Northern Trust Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ESG returned +20.82% while QQQ returned +25.59%. Year to date, ESG is up 15.35% versus a gain of 17.54% for QQQ.
Over three years, ESG compounded at +19.39% per year against +24.63% for QQQ; over five years the annualized figures are +11.68% and +14.18% respectively. Across the full 10-year window we track, QQQ has the edge at +20.51% annualized vs +14.98%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.9% compared with 17.4% for ESG. 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 -32.5% for ESG and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESG charges 0.32% per year while QQQ charges 0.18%. On a $10,000 position that is $32 vs $18 annually, a gap of $14 per year that compounds over a long holding period. On income, ESG currently yields 0.87% against 0.44% for QQQ.
Holdings Overlap
42.9% of ESG's money is in holdings QQQ also owns. 60.4% of QQQ's money is in holdings ESG also owns.
The two portfolios partly overlap.
41 positions in common, counted across the 250 positions we hold weights for in ESG and 102 in QQQ, against full books of 254 and 107.
What only one of them owns
Our book lists 55 positions for QQQ that do not appear in our book for ESG (37.2% of the fund), and 197 for ESG that do not appear in QQQ (54.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in ESG | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 5.12% | 8.44% | 3.32% |
| AAPLApple, Inc | 4.79% | 7.27% | 2.48% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 5.91% | 5.76% | 0.15% |
| MUMicron Technology, Inc. | 4.12% | 4.43% | 0.31% |
| AVGOBroadcom Inc | 5.06% | 3.16% | 1.90% |
| AMZNAmazon.Com Inc | 3.53% | 4.67% | 1.14% |
| AMDAdvanced Micro Devices Inc | 1.06% | 3.45% | 2.39% |
| WMTWalmart, Inc. | 2.07% | 2.41% | 0.34% |
| TSLATesla Motors Inc | 1.47% | 2.56% | 1.09% |
| COSTCostco Wholesale Corp. | 1.40% | 1.84% | 0.44% |
60.4% of QQQ is already inside ESG.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ESG or QQQ?
ESG has an expense ratio of 0.32% while QQQ charges 0.18%. QQQ is the cheaper option, by $14 a year on a $10,000 investment.
Which performed better, ESG or QQQ?
Over the past year ESG returned +20.82% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), ESG annualized +14.98% vs +20.51% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESG or QQQ?
QQQ has been the more volatile fund at 18.9% annualized versus 17.4% for ESG. Worst drawdown: ESG -32.5% vs QQQ -35.1%.
Should I hold both ESG and QQQ?
ESG and QQQ have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ESG and QQQ?
60.4% of QQQ's money is in holdings ESG also owns. 60.4% of QQQ's is in holdings ESG also owns. They hold 41 positions in common, counted across the 250 positions we hold weights for in ESG and 102 in QQQ.
Which pays a higher dividend, ESG or QQQ?
ESG yields 0.87% while QQQ yields 0.44%, so ESG currently pays the higher dividend yield.
Is QQQ better than ESG?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. ESG is less concentrated, with 41.5% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.