ETEC vs QQQ
iShares Breakthrough Environmental Solutions ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. ETEC delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | ETEC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.18% | |
| AUM | $4M | $455.8B | |
| Dividend Yield | 0.43% | 0.41% | |
| Holdings | 61 | 108 | |
| YTD Return | +10.06% | +18.31% | |
| 1Y Return | +27.50% | +25.37% | |
| 3Y Return (annualized) | +5.63% | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 24.5% | 30.6% | |
| Max Drawdown | -39.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 28, 2023 | Mar 10, 1999 |
ETEC vs QQQ Performance
iShares Breakthrough Environmental Solutions ETF (ETEC) 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 ETEC returned +27.50% while QQQ returned +25.37%. Year to date, ETEC is up 10.06% versus a gain of 18.31% for QQQ.
Over three years, ETEC compounded at +5.63% per year against +25.79% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.10% annualized vs +3.43%. 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 24.5% for ETEC. 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 -39.7% for ETEC 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ETEC charges 0.47% per year while QQQ charges 0.18%. On a $10,000 position that is $47 vs $18 annually, a gap of $29 per year that compounds over a long holding period. On income, ETEC currently yields 0.43% against 0.41% for QQQ.
Holdings Overlap
ETEC and QQQ share 1 holdings out of 150 unique holdings combined, representing a 2.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ETEC | Weight in QQQ | Difference |
|---|---|---|---|
| TSLA | 2.75% | 3.16% | 0.41% |
Frequently Asked Questions
Which is cheaper, ETEC or QQQ?
ETEC has an expense ratio of 0.47% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $29 per year of difference.
Which performed better, ETEC or QQQ?
Over the past year ETEC returned +27.50% vs +25.37% for QQQ, so ETEC leads on 1-year performance. Over the longest common window we track (3 years), ETEC annualized +3.43% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, ETEC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 24.5% for ETEC. Worst drawdown: ETEC -39.7% vs QQQ -83.0%.
Should I hold both ETEC and QQQ?
ETEC and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ETEC and QQQ?
ETEC and QQQ share 1 common holdings with a 2.8% weight overlap. Combined, they hold 150 unique securities.
Which pays a higher dividend, ETEC or QQQ?
ETEC yields 0.43% while QQQ yields 0.41%, so ETEC currently pays the higher dividend yield.
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