ESN vs QQQ
Essential 40 Stock ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | ESN | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.18% | |
| AUM | $339M | $496.3B | |
| Dividend Yield | 0.78% | 0.44% | |
| Holdings | 41 | 108 | |
| YTD Return | +18.83% | +16.23% | |
| 1Y Return | +26.23% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 10.8% | 30.6% | |
| Max Drawdown | -13.6% | -83.0% | |
| Fund Family | KKM Financial | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 11, 2024 | Mar 10, 1999 |
ESN vs QQQ Performance
Essential 40 Stock ETF (ESN) is a ETF from KKM Financial and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ESN returned +26.23% while QQQ returned +26.23%. Year to date, ESN is up 18.83% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 10.8% for ESN. 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 -13.6% for ESN 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
ESN charges 0.70% per year while QQQ charges 0.18%. On a $10,000 position that is $70 vs $18 annually, a gap of $52 per year that compounds over a long holding period. On income, ESN currently yields 0.78% against 0.44% for QQQ.
Holdings Overlap
ESN and QQQ share 8 holdings out of 131 unique holdings combined, representing a 15.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ESN or QQQ?
ESN has an expense ratio of 0.70% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, ESN or QQQ?
Over the past year ESN returned +26.23% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), ESN annualized +18.21% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, ESN or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.8% for ESN. Worst drawdown: ESN -13.6% vs QQQ -83.0%.
Should I hold both ESN and QQQ?
ESN 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 ESN and QQQ?
ESN and QQQ share 8 common holdings with a 15.2% weight overlap. Combined, they hold 131 unique securities.
Which pays a higher dividend, ESN or QQQ?
ESN yields 0.78% while QQQ yields 0.44%, so ESN currently pays the higher dividend yield.
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