ETHE vs QQQ
Grayscale Ethereum Staking ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | ETHE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.50% | 0.18% | |
| AUM | $1.5B | $455.8B | |
| Dividend Yield | 1.50% | 0.41% | |
| Holdings | 1 | 108 | |
| YTD Return | -40.32% | +17.46% | |
| 1Y Return | -56.61% | +26.02% | |
| 3Y Return (annualized) | +14.79% | +25.51% | |
| 5Y Return (annualized) | -11.25% | +15.12% | |
| Volatility (annualized) | 112.7% | 30.6% | |
| Max Drawdown | -96.3% | -83.0% | |
| Fund Family | Grayscale | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 14, 2017 | Mar 10, 1999 |
ETHE vs QQQ Performance
Grayscale Ethereum Staking ETF (ETHE) is a ETF from Grayscale and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ETHE returned -56.61% while QQQ returned +26.02%. Year to date, ETHE is down 40.32% versus a gain of 17.46% for QQQ.
Over three years, ETHE compounded at +14.79% per year against +25.51% for QQQ; over five years the annualized figures are -11.25% and +15.12% respectively. Across the full 7-year window we track, QQQ has the edge at +13.08% annualized vs -8.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ETHE has been the more volatile fund, with annualized monthly volatility of 112.7% compared with 30.6% 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 -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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
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 1.50% against 0.41% for QQQ.
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. On a $10,000 investment, that is $232 per year of difference.
Which performed better, ETHE or QQQ?
Over the past year ETHE returned -56.61% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), ETHE annualized -8.87% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, ETHE or QQQ?
ETHE has been the more volatile fund at 112.7% annualized versus 30.6% for QQQ. Worst drawdown: ETHE -96.3% vs QQQ -83.0%.
Should I hold both ETHE and QQQ?
ETHE and QQQ have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, ETHE or QQQ?
ETHE yields 1.50% while QQQ yields 0.41%, so ETHE currently pays the higher dividend yield.
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