ESGU vs QQQ
iShares ESG Aware MSCI USA ETF vs Invesco QQQ Trust, Series 1
Which is better, ESGU or QQQ?
Large Cap Blend against Large Cap Growth.
ESGU has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. ESGU is less concentrated, with 36.4% 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 | ESGU | QQQ |
|---|---|---|
| Expense Ratio | 0.15%Best | 0.18% |
| AUM | $18.0B | $483.5B |
| Dividend Yield | 0.91% | 0.44% |
| Holdings | 282 | 107 |
| YTD Return | +11.46% | +15.18%Best |
| 1Y Return | +15.83% | +19.65%Best |
| 3Y Return (annualized) | +20.60% | +24.60%Best |
| 5Y Return (annualized) | +11.42% | +13.94%Best |
| Volatility (annualized) | 15.9%Best | 19.3% |
| Max Drawdown | -33.9%Best | -35.1% |
| $10,000 over 5 years | $17,172 | $19,204Best |
| Top 10 Weight | 36.4%Best | 46.5% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Dec 1, 2016 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Dec 6, 2016 to Sep 15, 2026 (9.8 years).
ESGU 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 9.8 years both funds cover.
ESGU vs QQQ Performance
iShares ESG Aware MSCI USA ETF (ESGU) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ESGU returned +15.83% while QQQ returned +19.65%. Year to date, ESGU is up 11.46% versus a gain of 15.18% for QQQ.
Over three years, ESGU compounded at +20.60% per year against +24.60% for QQQ; over five years the annualized figures are +11.42% and +13.94% respectively. Across the full 10-year window we track, QQQ has the edge at +20.58% annualized vs +14.27%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.3% compared with 15.9% for ESGU. 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 -33.9% for ESGU 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
ESGU charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, ESGU currently yields 0.91% against 0.44% for QQQ.
Holdings Overlap
52.0% of ESGU's money is in holdings QQQ also owns. 85.4% of QQQ's money is in holdings ESGU also owns.
Most of QQQ is already inside ESGU. Owning both mostly buys the same companies twice.
65 positions in common, counted across the 267 positions we hold weights for in ESGU and 102 in QQQ, against full books of 282 and 107.
What only one of them owns
Our book lists 31 positions for QQQ that do not appear in our book for ESGU (12.1% of the fund), and 194 for ESGU that do not appear in QQQ (46.3%).
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 ESGU | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp | 7.67% | 8.44% | 0.77% |
| AAPLApple, Inc | 6.90% | 7.27% | 0.37% |
| MSFTMicrosoft Corp | 5.44% | 5.76% | 0.32% |
| AMZNAmazon.Com Inc | 3.70% | 4.67% | 0.97% |
| GOOGAlphabet Inc | 3.41% | 3.13% | 0.28% |
| MUMicron Technology, Inc. | 1.59% | 4.43% | 2.84% |
| AVGOBroadcom Inc | 2.55% | 3.16% | 0.61% |
| GOOGLAlphabet Inc,class A | 1.88% | 3.36% | 1.48% |
| AMDAdvanced Micro Devices Inc | 1.18% | 3.45% | 2.27% |
| METAMeta Platforms Inc | 1.74% | 2.78% | 1.04% |
85.4% of QQQ is already inside ESGU.
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, ESGU or QQQ?
ESGU has an expense ratio of 0.15% while QQQ charges 0.18%. ESGU is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, ESGU or QQQ?
Over the past year ESGU returned +15.83% vs +19.65% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), ESGU annualized +14.27% vs +20.58% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESGU or QQQ?
QQQ has been the more volatile fund at 19.3% annualized versus 15.9% for ESGU. Worst drawdown: ESGU -33.9% vs QQQ -35.1%.
Should I hold both ESGU and QQQ?
ESGU and QQQ have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between ESGU and QQQ?
85.4% of QQQ's money is in holdings ESGU also owns. 85.4% of QQQ's is in holdings ESGU also owns. They hold 65 positions in common, counted across the 267 positions we hold weights for in ESGU and 102 in QQQ.
Which pays a higher dividend, ESGU or QQQ?
ESGU yields 0.91% while QQQ yields 0.44%, so ESGU currently pays the higher dividend yield.
Is QQQ better than ESGU?
ESGU has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. ESGU is less concentrated, with 36.4% 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.