EVN vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricEVNQQQWinner
Expense Ratio2.46%0.18%
AUM$443M$455.8B
Dividend Yield5.64%0.41%
Holdings237108
YTD Return+4.51%+18.31%
1Y Return+8.71%+25.37%
3Y Return (annualized)+9.23%+25.79%
5Y Return (annualized)-0.41%+15.20%
Volatility (annualized)15.7%30.6%
Max Drawdown-62.5%-83.0%
Fund FamilyEaton VanceInvesco (US)
CategoryTax PreferredEquity
InceptionJan 29, 1999Mar 10, 1999

EVN vs QQQ Performance

Eaton Vance Municipal Income Trust (EVN) is a ETF from Eaton Vance and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EVN returned +8.71% while QQQ returned +25.37%. Year to date, EVN is up 4.51% versus a gain of 18.31% for QQQ.

Over three years, EVN compounded at +9.23% per year against +25.79% for QQQ; over five years the annualized figures are -0.41% and +15.20% respectively. Across the full 27-year window we track, QQQ has the edge at +13.10% annualized vs -0.17%. 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 15.7% for EVN. 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 -62.5% for EVN 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 0.13. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EVN charges 2.46% per year while QQQ charges 0.18%. On a $10,000 position that is $246 vs $18 annually, a gap of $228 per year that compounds over a long holding period. On income, EVN currently yields 5.64% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

EVN and QQQ share 0 holdings out of 202 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, EVN or QQQ?

EVN has an expense ratio of 2.46% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $228 per year of difference.

Which performed better, EVN or QQQ?

Over the past year EVN returned +8.71% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), EVN annualized -0.17% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, EVN or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 15.7% for EVN. Worst drawdown: EVN -62.5% vs QQQ -83.0%.

Should I hold both EVN and QQQ?

EVN and QQQ have a monthly-return correlation of 0.13, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EVN and QQQ?

EVN and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 202 unique securities.

Which pays a higher dividend, EVN or QQQ?

EVN yields 5.64% while QQQ yields 0.41%, so EVN currently pays the higher dividend yield.

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