ETEC vs QQQ

ETEC vs QQQ

Which is better, ETEC or QQQ?

Large Cap Blend against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 49.2%.

Lower Fees: QQQHigher Returns: QQQLess Concentrated: QQQ

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

MetricETECQQQ
Expense Ratio0.47%0.18%Best
AUM$4M$486.1B
Dividend Yield0.50%0.44%
Holdings61107
YTD Return+1.38%+17.44%Best
1Y Return+8.42%+24.69%Best
3Y Return (annualized)+4.42%+24.76%Best
5Y Return (annualized)-+14.22%
Volatility (annualized)24.0%17.0%Best
Max Drawdown-39.7%-22.8%Best
$10,000 over 3.4 years$10,316$22,581Best
Top 10 Weight49.2%46.5%Best
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Growth
InceptionMar 28, 2023Mar 10, 1999

Volatility and max drawdown, and the $10,000 over 3.4 years row, are measured over the window both funds cover: Mar 31, 2023 to Sep 8, 2026 (3.4 years).

ETEC 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 3.4 years both funds cover.

ETEC vs QQQ Performance

iShares Breakthrough Environmental Solutions ETF (ETEC) 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 ETEC returned +8.42% while QQQ returned +24.69%. Year to date, ETEC is up 1.38% versus a gain of 17.44% for QQQ.

Over three years, ETEC compounded at +4.42% per year against +24.76% for QQQ.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ETEC has been the more volatile fund, with annualized monthly volatility of 24.0% compared with 17.0% 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 -39.7% for ETEC 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 0.57. They move together some of the time, and apart the rest.

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 0.50% against 0.44% for QQQ.

Holdings Overlap

ETEC already in QQQ2.8%
QQQ already in ETEC2.6%

2.8% of ETEC's money is in holdings QQQ also owns. 2.6% of QQQ's money is in holdings ETEC also owns.

ETEC and QQQ share little of their money.

1 positions in common, counted across the 48 positions we hold weights for in ETEC and 102 in QQQ, against full books of 61 and 107.

What only one of them owns

Our book lists 93 positions for QQQ that do not appear in our book for ETEC (94.3% of the fund), and 11 for ETEC that do not appear in QQQ (37.8%).

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

StockWeight in ETECWeight in QQQDifference
TSLATesla Motors Inc2.75%2.56%0.19%

You are not choosing between two funds in isolation.

Whichever of ETEC and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

ETECQQQ

Free for up to 10 holdings. No account needed.

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, by $29 a year on a $10,000 investment.

Which performed better, ETEC or QQQ?

Over the past year ETEC returned +8.42% vs +24.69% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, ETEC or QQQ?

ETEC has been the more volatile fund at 24.0% annualized versus 17.0% for QQQ. Worst drawdown: ETEC -39.7% vs QQQ -22.8%.

Should I hold both ETEC and QQQ?

ETEC and QQQ have a monthly-return correlation of 0.57, 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 ETEC and QQQ?

2.8% of ETEC's money is in holdings QQQ also owns. 2.6% of QQQ's is in holdings ETEC also owns. They hold 1 positions in common, counted across the 48 positions we hold weights for in ETEC and 102 in QQQ.

Which pays a higher dividend, ETEC or QQQ?

ETEC yields 0.50% while QQQ yields 0.44%, so ETEC currently pays the higher dividend yield.

Is QQQ better than ETEC?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 49.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.