ESGE vs QQQ
iShares ESG Aware MSCI EM ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. ESGE delivered stronger 1-year returns. ESGE offers more diversification with 332 holdings.
Side-by-Side Comparison
| Metric | ESGE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $6.9B | $496.3B | |
| Dividend Yield | 2.23% | 0.44% | |
| Holdings | 332 | 108 | |
| YTD Return | +19.56% | +16.64% | |
| 1Y Return | +36.97% | +27.27% | |
| 3Y Return (annualized) | +24.17% | +25.96% | |
| 5Y Return (annualized) | +8.45% | +14.54% | |
| Volatility (annualized) | 17.2% | 30.6% | |
| Max Drawdown | -41.1% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 28, 2016 | Mar 10, 1999 |
ESGE vs QQQ Performance
iShares ESG Aware MSCI EM ETF (ESGE) 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 ESGE returned +36.97% while QQQ returned +27.27%. Year to date, ESGE is up 19.56% versus a gain of 16.64% for QQQ.
Over three years, ESGE compounded at +24.17% per year against +25.96% for QQQ; over five years the annualized figures are +8.45% and +14.54% respectively. Across the full 10-year window we track, QQQ has the edge at +13.03% annualized vs +8.49%. 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 17.2% for ESGE. 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 -41.1% for ESGE 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ESGE charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, ESGE currently yields 2.23% against 0.44% for QQQ.
Holdings Overlap
ESGE and QQQ share 0 holdings out of 387 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, ESGE or QQQ?
ESGE has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, ESGE or QQQ?
Over the past year ESGE returned +36.97% vs +27.27% for QQQ, so ESGE leads on 1-year performance. Over the longest common window we track (10 years), ESGE annualized +8.49% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, ESGE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.2% for ESGE. Worst drawdown: ESGE -41.1% vs QQQ -83.0%.
Should I hold both ESGE and QQQ?
ESGE and QQQ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESGE and QQQ?
ESGE and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 387 unique securities.
Which pays a higher dividend, ESGE or QQQ?
ESGE yields 2.23% while QQQ yields 0.44%, so ESGE currently pays the higher dividend yield.
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