ETB vs QQQ
Eaton Vance Tax-Managed Buy-Write Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. ETB offers more diversification with 156 holdings.
Side-by-Side Comparison
| Metric | ETB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.12% | 0.18% | |
| AUM | $391M | $496.3B | |
| Dividend Yield | 7.49% | 0.44% | |
| Holdings | 156 | 108 | |
| YTD Return | +7.96% | +16.23% | |
| 1Y Return | +15.51% | +26.23% | |
| 3Y Return (annualized) | +15.30% | +25.75% | |
| 5Y Return (annualized) | +7.82% | +14.78% | |
| Volatility (annualized) | 17.3% | 30.6% | |
| Max Drawdown | -59.4% | -83.0% | |
| Fund Family | Eaton Vance | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Apr 27, 2005 | Mar 10, 1999 |
ETB vs QQQ Performance
Eaton Vance Tax-Managed Buy-Write Income Fund (ETB) is a ETF from Eaton Vance and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ETB returned +15.51% while QQQ returned +26.23%. Year to date, ETB is up 7.96% versus a gain of 16.23% for QQQ.
Over three years, ETB compounded at +15.30% per year against +25.75% for QQQ; over five years the annualized figures are +7.82% and +14.78% respectively. Across the full 21-year window we track, QQQ has the edge at +13.02% annualized vs +1.06%. 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 17.3% for ETB. 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 -59.4% for ETB 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ETB charges 1.12% per year while QQQ charges 0.18%. On a $10,000 position that is $112 vs $18 annually, a gap of $94 per year that compounds over a long holding period. On income, ETB currently yields 7.49% against 0.44% for QQQ.
Holdings Overlap
ETB and QQQ share 36 holdings out of 211 unique holdings combined, representing a 49.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ETB or QQQ?
ETB has an expense ratio of 1.12% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $94 per year of difference.
Which performed better, ETB or QQQ?
Over the past year ETB returned +15.51% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), ETB annualized +1.06% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, ETB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.3% for ETB. Worst drawdown: ETB -59.4% vs QQQ -83.0%.
Should I hold both ETB and QQQ?
ETB and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ETB and QQQ?
ETB and QQQ share 36 common holdings with a 49.3% weight overlap. Combined, they hold 211 unique securities.
Which pays a higher dividend, ETB or QQQ?
ETB yields 7.49% while QQQ yields 0.44%, so ETB currently pays the higher dividend yield.
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