ESML vs QQQ
iShares ESG Aware MSCI USA Small-Cap ETF vs Invesco QQQ Trust, Series 1
Which is better, ESML or QQQ?
Small Cap Blend against Large Cap Growth.
ESML has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. ESML is less concentrated, with 4.5% 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 | ESML | QQQ |
|---|---|---|
| Expense Ratio | 0.17%Best | 0.18% |
| AUM | $2.8B | $483.5B |
| Dividend Yield | 0.91% | 0.44% |
| Holdings | 913 | 107 |
| YTD Return | +14.07% | +17.95%Best |
| 1Y Return | +16.60% | +21.77%Best |
| 3Y Return (annualized) | +16.53% | +25.63%Best |
| 5Y Return (annualized) | +7.65% | +15.24%Best |
| Volatility (annualized) | 21.3% | 20.3%Best |
| Max Drawdown | -42.0% | -35.1%Best |
| $10,000 over 5 years | $14,457 | $20,324Best |
| Top 10 Weight | 4.5%Best | 46.5% |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Growth |
| Inception | Apr 10, 2018 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Apr 12, 2018 to Sep 18, 2026 (8.4 years).
ESML 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 8.4 years both funds cover.
ESML vs QQQ Performance
iShares ESG Aware MSCI USA Small-Cap ETF (ESML) 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 ESML returned +16.60% while QQQ returned +21.77%. Year to date, ESML is up 14.07% versus a gain of 17.95% for QQQ.
Over three years, ESML compounded at +16.53% per year against +25.63% for QQQ; over five years the annualized figures are +7.65% and +15.24% respectively. Across the full 8-year window we track, QQQ has the edge at +19.81% annualized vs +9.80%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ESML has been the more volatile fund, with annualized monthly volatility of 21.3% compared with 20.3% for QQQ. 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 -42.0% for ESML 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESML charges 0.17% per year while QQQ charges 0.18%. On a $10,000 position that is $17 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, ESML currently yields 0.91% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 854 holdings in ESML and 102 in QQQ, totalling 96.0% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 854 positions we hold weights for in ESML and 102 in QQQ, against full books of 913 and 107.
What only one of them owns
Our book lists 96 positions for QQQ that do not appear in our book for ESML (97.5% of the fund), and 834 for ESML that do not appear in QQQ (93.7%).
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.
You are not choosing between two funds in isolation.
Whichever of ESML and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, ESML or QQQ?
ESML has an expense ratio of 0.17% while QQQ charges 0.18%. ESML is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, ESML or QQQ?
Over the past year ESML returned +16.60% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), ESML annualized +9.80% vs +19.81% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESML or QQQ?
ESML has been the more volatile fund at 21.3% annualized versus 20.3% for QQQ. Worst drawdown: ESML -42.0% vs QQQ -35.1%.
Should I hold both ESML and QQQ?
ESML and QQQ have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, ESML or QQQ?
ESML yields 0.91% while QQQ yields 0.44%, so ESML currently pays the higher dividend yield.
Is QQQ better than ESML?
ESML has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. ESML is less concentrated, with 4.5% 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.