EWG vs QQQ
iShares MSCI Germany 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 108 holdings.
Side-by-Side Comparison
| Metric | EWG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.18% | |
| AUM | $1.7B | $496.3B | |
| Dividend Yield | 1.94% | 0.44% | |
| Holdings | 58 | 108 | |
| YTD Return | +5.26% | +16.23% | |
| 1Y Return | +5.69% | +26.23% | |
| 3Y Return (annualized) | +19.16% | +25.75% | |
| 5Y Return (annualized) | +7.56% | +14.78% | |
| Volatility (annualized) | 23.1% | 30.6% | |
| Max Drawdown | -71.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 12, 1996 | Mar 10, 1999 |
EWG vs QQQ Performance
iShares MSCI Germany ETF (EWG) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EWG returned +5.69% while QQQ returned +26.23%. Year to date, EWG is up 5.26% versus a gain of 16.23% for QQQ.
Over three years, EWG compounded at +19.16% per year against +25.75% for QQQ; over five years the annualized figures are +7.56% and +14.78% respectively. Across the full 27-year window we track, QQQ has the edge at +13.02% annualized vs +4.43%. 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 23.1% for EWG. 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 -71.8% for EWG 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EWG charges 0.49% per year while QQQ charges 0.18%. On a $10,000 position that is $49 vs $18 annually, a gap of $31 per year that compounds over a long holding period. On income, EWG currently yields 1.94% against 0.44% for QQQ.
Holdings Overlap
EWG and QQQ share 0 holdings out of 155 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, EWG or QQQ?
EWG has an expense ratio of 0.49% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, EWG or QQQ?
Over the past year EWG returned +5.69% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), EWG annualized +4.43% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, EWG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.1% for EWG. Worst drawdown: EWG -71.8% vs QQQ -83.0%.
Should I hold both EWG and QQQ?
EWG and QQQ have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EWG and QQQ?
EWG and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 155 unique securities.
Which pays a higher dividend, EWG or QQQ?
EWG yields 1.94% while QQQ yields 0.44%, so EWG currently pays the higher dividend yield.
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