ESN vs QQQ
Essential 40 Stock ETF vs Invesco QQQ Trust, Series 1
Which is better, ESN or QQQ?
Large Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. ESN led over 1Y, QQQ over the full window. ESN is less concentrated, with 32.6% 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 | ESN | QQQ |
|---|---|---|
| Expense Ratio | 0.70% | 0.18%Best |
| AUM | $339M | $483.5B |
| Dividend Yield | 0.76% | 0.44% |
| Holdings | 44 | 107 |
| YTD Return | +19.43%Best | +17.95% |
| 1Y Return | +22.53%Best | +21.77% |
| 3Y Return (annualized) | - | +25.63% |
| 5Y Return (annualized) | - | +15.24% |
| Volatility (annualized) | 10.7%Best | 18.8% |
| Max Drawdown | -13.6%Best | -22.8% |
| $10,000 over 1.9 years | $13,632 | $14,671Best |
| Top 10 Weight | 32.6%Best | 46.5% |
| Fund Family | KKM Financial | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Jun 11, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 1.9 years row, are measured over the window both funds cover: Oct 21, 2024 to Sep 18, 2026 (1.9 years).
ESN 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 1.9 years both funds cover.
ESN vs QQQ Performance
Essential 40 Stock ETF (ESN) is an ETF from KKM Financial and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ESN returned +22.53% while QQQ returned +21.77%. Year to date, ESN is up 19.43% versus a gain of 17.95% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 10.7% 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 -22.8% 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 0.67. They move together some of the time, and apart the rest.
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 0.76% against 0.44% for QQQ.
Holdings Overlap
22.6% of ESN's money is in holdings QQQ also owns. 27.8% of QQQ's money is in holdings ESN also owns.
QQQ and ESN share little of their money.
8 positions in common, counted across the 41 positions we hold weights for in ESN and 102 in QQQ, against full books of 44 and 107.
What only one of them owns
Our book lists 88 positions for QQQ that do not appear in our book for ESN (69.7% of the fund), and 31 for ESN that do not appear in QQQ (72.3%).
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 ESN | Weight in QQQ | Difference |
|---|---|---|---|
| AAPLApple, Inc | 2.74% | 7.27% | 4.53% |
| MSFTMicrosoft Corp | 2.30% | 5.76% | 3.46% |
| INTCIntel Corporation | 4.88% | 2.23% | 2.65% |
| AMZNAmazon.Com Inc | 2.28% | 4.67% | 2.39% |
| GOOGLAlphabet Inc,class A | 2.22% | 3.36% | 1.14% |
| PANWPalo Alto Networks, Inc | 3.78% | 1.30% | 2.48% |
| METAMeta Platforms Inc | 2.04% | 2.78% | 0.74% |
| ADPAutomatic Data Processing, Inc. | 2.31% | 0.47% | 1.84% |
27.8% of QQQ is already inside ESN.
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, ESN or QQQ?
ESN has an expense ratio of 0.70% while QQQ charges 0.18%. QQQ is the cheaper option, by $52 a year on a $10,000 investment.
Which performed better, ESN or QQQ?
Over the past year ESN returned +22.53% vs +21.77% for QQQ, so ESN leads on 1-year performance. Over the longest common window we track (2 years), ESN annualized +17.71% vs +22.35% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ESN or QQQ?
QQQ has been the more volatile fund at 18.8% annualized versus 10.7% for ESN. Worst drawdown: ESN -13.6% vs QQQ -22.8%.
Should I hold both ESN and QQQ?
ESN and QQQ have a monthly-return correlation of 0.67, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between ESN and QQQ?
27.8% of QQQ's money is in holdings ESN also owns. 27.8% of QQQ's is in holdings ESN also owns. They hold 8 positions in common, counted across the 41 positions we hold weights for in ESN and 102 in QQQ.
Which pays a higher dividend, ESN or QQQ?
ESN yields 0.76% while QQQ yields 0.44%, so ESN currently pays the higher dividend yield.
Is QQQ better than ESN?
QQQ has a lower expense ratio. ESN led over 1Y, QQQ over the full window. ESN is less concentrated, with 32.6% 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.