ETY vs QQQ
Eaton Vance Tax-Managed Diversified Equity Income Fund 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 108 holdings.
Side-by-Side Comparison
| Metric | ETY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.06% | 0.18% | |
| AUM | $1.8B | $496.3B | |
| Dividend Yield | 7.64% | 0.44% | |
| Holdings | 61 | 108 | |
| YTD Return | -0.95% | +16.23% | |
| 1Y Return | -0.22% | +26.23% | |
| 3Y Return (annualized) | +15.04% | +25.75% | |
| 5Y Return (annualized) | +8.49% | +14.78% | |
| Volatility (annualized) | 17.2% | 30.6% | |
| Max Drawdown | -64.6% | -83.0% | |
| Fund Family | Eaton Vance | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 27, 2006 | Mar 10, 1999 |
ETY vs QQQ Performance
Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY) is a ETF from Eaton Vance and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ETY returned -0.22% while QQQ returned +26.23%. Year to date, ETY is down 0.95% versus a gain of 16.23% for QQQ.
Over three years, ETY compounded at +15.04% per year against +25.75% for QQQ; over five years the annualized figures are +8.49% and +14.78% respectively. Across the full 20-year window we track, QQQ has the edge at +13.02% annualized vs +0.59%. 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 17.2% for ETY. 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 -64.6% for ETY 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ETY charges 1.06% per year while QQQ charges 0.18%. On a $10,000 position that is $106 vs $18 annually, a gap of $88 per year that compounds over a long holding period. On income, ETY currently yields 7.64% against 0.44% for QQQ.
Holdings Overlap
ETY and QQQ share 15 holdings out of 136 unique holdings combined, representing a 41.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, ETY or QQQ?
ETY has an expense ratio of 1.06% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $88 per year of difference.
Which performed better, ETY or QQQ?
Over the past year ETY returned -0.22% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), ETY annualized +0.59% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, ETY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.2% for ETY. Worst drawdown: ETY -64.6% vs QQQ -83.0%.
Should I hold both ETY and QQQ?
ETY and QQQ have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ETY and QQQ?
ETY and QQQ share 15 common holdings with a 41.8% weight overlap. Combined, they hold 136 unique securities.
Which pays a higher dividend, ETY or QQQ?
ETY yields 7.64% while QQQ yields 0.44%, so ETY currently pays the higher dividend yield.
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