ESGU vs QQQ
iShares ESG Aware MSCI USA ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
ESGU has a lower expense ratio. QQQ delivered stronger 1-year returns. ESGU offers more diversification with 282 holdings.
Side-by-Side Comparison
| Metric | ESGU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $18.4B | $496.3B | |
| Dividend Yield | 0.94% | 0.44% | |
| Holdings | 282 | 108 | |
| YTD Return | +12.99% | +16.19% | |
| 1Y Return | +20.40% | +25.22% | |
| 3Y Return (annualized) | +21.24% | +25.47% | |
| 5Y Return (annualized) | +11.61% | +14.34% | |
| Volatility (annualized) | 15.9% | 30.6% | |
| Max Drawdown | -33.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 1, 2016 | Mar 10, 1999 |
ESGU vs QQQ Performance
iShares ESG Aware MSCI USA ETF (ESGU) 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 ESGU returned +20.40% while QQQ returned +25.22%. Year to date, ESGU is up 12.99% versus a gain of 16.19% for QQQ.
Over three years, ESGU compounded at +21.24% per year against +25.47% for QQQ; over five years the annualized figures are +11.61% and +14.34% respectively. Across the full 10-year window we track, ESGU has the edge at +14.49% annualized vs +13.01%. 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 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 -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 0.92. 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 0.94% against 0.44% for QQQ.
Holdings Overlap
ESGU and QQQ share 64 holdings out of 307 unique holdings combined, representing a 51.0% weight overlap.
High overlap means holding both may not provide much additional diversification.
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. On a $10,000 investment, that is $3 per year of difference.
Which performed better, ESGU or QQQ?
Over the past year ESGU returned +20.40% vs +25.22% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), ESGU annualized +14.49% vs +13.01% for QQQ. Past performance does not guarantee future results.
Which is riskier, ESGU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.9% for ESGU. Worst drawdown: ESGU -33.9% vs QQQ -83.0%.
Should I hold both ESGU and QQQ?
ESGU and QQQ have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between ESGU and QQQ?
ESGU and QQQ share 64 common holdings with a 51.0% weight overlap. Combined, they hold 307 unique securities.
Which pays a higher dividend, ESGU or QQQ?
ESGU yields 0.94% while QQQ yields 0.44%, so ESGU currently pays the higher dividend yield.
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