ETHE vs QQQ

ETHE vs QQQ

Which is better, ETHE or QQQ?

Multi Alternative against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.

Lower Fees: QQQHigher Returns: 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

MetricETHEQQQ
Expense Ratio2.50%0.18%Best
AUM$1.8B$483.5B
Dividend Yield1.20%0.44%
Holdings1107
YTD Return-22.26%+17.21%Best
1Y Return-46.57%+22.10%Best
3Y Return (annualized)+24.69%+25.27%Best
5Y Return (annualized)-7.53%+14.60%Best
Volatility (annualized)112.5%20.3%Best
Max Drawdown-96.3%-35.1%Best
$10,000 over 5 years$6,761$19,766Best
Fund FamilyGrayscaleInvesco (US)
CategoryAlternativeEquity
StyleMulti AlternativeLarge Cap Growth
InceptionDec 14, 2017Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jun 20, 2019 to Sep 17, 2026 (7.2 years).

ETHE 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 7.2 years both funds cover.

ETHE vs QQQ Performance

Grayscale Ethereum Staking ETF (ETHE) is an ETF from Grayscale and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ETHE returned -46.57% while QQQ returned +22.10%. Year to date, ETHE is down 22.26% versus a gain of 17.21% for QQQ.

Over three years, ETHE compounded at +24.69% per year against +25.27% for QQQ; over five years the annualized figures are -7.53% and +14.60% respectively. Across the full 7-year window we track, QQQ has the edge at +20.76% annualized vs -5.36%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ETHE has been the more volatile fund, with annualized monthly volatility of 112.5% compared with 20.3% 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 -96.3% for ETHE and -35.1% 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 0.38. They move together some of the time, and apart the rest.

Fees and Cost Over Time

ETHE charges 2.50% per year while QQQ charges 0.18%. On a $10,000 position that is $250 vs $18 annually, a gap of $232 per year that compounds over a long holding period. On income, ETHE currently yields 1.20% against 0.44% for QQQ.

You are not choosing between two funds in isolation.

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

ETHEQQQ

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Frequently Asked Questions

Which is cheaper, ETHE or QQQ?

ETHE has an expense ratio of 2.50% while QQQ charges 0.18%. QQQ is the cheaper option, by $232 a year on a $10,000 investment.

Which performed better, ETHE or QQQ?

Over the past year ETHE returned -46.57% vs +22.10% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), ETHE annualized -5.36% vs +20.76% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, ETHE or QQQ?

ETHE has been the more volatile fund at 112.5% annualized versus 20.3% for QQQ. Worst drawdown: ETHE -96.3% vs QQQ -35.1%.

Should I hold both ETHE and QQQ?

ETHE and QQQ have a monthly-return correlation of 0.38, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, ETHE or QQQ?

ETHE yields 1.20% while QQQ yields 0.44%, so ETHE currently pays the higher dividend yield.

Is QQQ better than ETHE?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.