EVSM vs QQQ
Eaton Vance Short Duration Municipal Income 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 | EVSM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.18% | |
| AUM | $783M | $455.8B | |
| Dividend Yield | 2.99% | 0.41% | |
| Holdings | 359 | 108 | |
| YTD Return | +1.38% | +18.31% | |
| 1Y Return | +2.64% | +25.37% | |
| 3Y Return (annualized) | - | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 1.4% | 30.6% | |
| Max Drawdown | -1.5% | -83.0% | |
| Fund Family | Eaton Vance | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 25, 2024 | Mar 10, 1999 |
EVSM vs QQQ Performance
Eaton Vance Short Duration Municipal Income ETF (EVSM) is a ETF from Eaton Vance and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EVSM returned +2.64% while QQQ returned +25.37%. Year to date, EVSM is up 1.38% versus a gain of 18.31% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 1.4% for EVSM. 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 -1.5% for EVSM 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EVSM charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, EVSM currently yields 2.99% against 0.41% for QQQ.
Holdings Overlap
EVSM and QQQ share 0 holdings out of 201 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, EVSM or QQQ?
EVSM has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, EVSM or QQQ?
Over the past year EVSM returned +2.64% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), EVSM annualized +3.43% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, EVSM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 1.4% for EVSM. Worst drawdown: EVSM -1.5% vs QQQ -83.0%.
Should I hold both EVSM and QQQ?
EVSM and QQQ have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EVSM and QQQ?
EVSM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 201 unique securities.
Which pays a higher dividend, EVSM or QQQ?
EVSM yields 2.99% while QQQ yields 0.41%, so EVSM currently pays the higher dividend yield.
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