ETW vs QQQ
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. ETW offers more diversification with 291 holdings.
Side-by-Side Comparison
| Metric | ETW | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.10% | 0.18% | |
| AUM | $936M | $496.3B | |
| Dividend Yield | 7.47% | 0.44% | |
| Holdings | 291 | 108 | |
| YTD Return | +12.70% | +16.64% | |
| 1Y Return | +20.91% | +27.27% | |
| 3Y Return (annualized) | +17.63% | +25.96% | |
| 5Y Return (annualized) | +6.41% | +14.54% | |
| Volatility (annualized) | 16.9% | 30.6% | |
| Max Drawdown | -72.8% | -83.0% | |
| Fund Family | Eaton Vance | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 30, 2005 | Mar 10, 1999 |
ETW vs QQQ Performance
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund (ETW) is a ETF from Eaton Vance and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ETW returned +20.91% while QQQ returned +27.27%. Year to date, ETW is up 12.70% versus a gain of 16.64% for QQQ.
Over three years, ETW compounded at +17.63% per year against +25.96% for QQQ; over five years the annualized figures are +6.41% and +14.54% respectively. Across the full 21-year window we track, QQQ has the edge at +13.03% annualized vs -1.05%. 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 16.9% for ETW. 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 -72.8% for ETW 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ETW charges 1.10% per year while QQQ charges 0.18%. On a $10,000 position that is $110 vs $18 annually, a gap of $92 per year that compounds over a long holding period. On income, ETW currently yields 7.47% against 0.44% for QQQ.
Holdings Overlap
ETW and QQQ share 28 holdings out of 333 unique holdings combined, representing a 34.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ETW or QQQ?
ETW has an expense ratio of 1.10% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $92 per year of difference.
Which performed better, ETW or QQQ?
Over the past year ETW returned +20.91% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), ETW annualized -1.05% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, ETW or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.9% for ETW. Worst drawdown: ETW -72.8% vs QQQ -83.0%.
Should I hold both ETW and QQQ?
ETW and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ETW and QQQ?
ETW and QQQ share 28 common holdings with a 34.5% weight overlap. Combined, they hold 333 unique securities.
Which pays a higher dividend, ETW or QQQ?
ETW yields 7.47% while QQQ yields 0.44%, so ETW currently pays the higher dividend yield.
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