EWJ vs QQQ
iShares MSCI Japan ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. EWJ delivered stronger 1-year returns. EWJ offers more diversification with 174 holdings.
Side-by-Side Comparison
| Metric | EWJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.18% | |
| AUM | $23.1B | $496.3B | |
| Dividend Yield | 3.82% | 0.44% | |
| Holdings | 174 | 108 | |
| YTD Return | +21.41% | +19.52% | |
| 1Y Return | +30.00% | +26.68% | |
| 3Y Return (annualized) | +21.22% | +26.64% | |
| 5Y Return (annualized) | +10.18% | +15.36% | |
| Volatility (annualized) | 17.7% | 30.6% | |
| Max Drawdown | -62.2% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 12, 1996 | Mar 10, 1999 |
EWJ vs QQQ Performance
iShares MSCI Japan ETF (EWJ) 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 EWJ returned +30.00% while QQQ returned +26.68%. Year to date, EWJ is up 21.41% versus a gain of 19.52% for QQQ.
Over three years, EWJ compounded at +21.22% per year against +26.64% for QQQ; over five years the annualized figures are +10.18% and +15.36% respectively. Across the full 27-year window we track, QQQ has the edge at +13.14% annualized vs +1.91%. 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 17.7% for EWJ. 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 -62.2% for EWJ 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
EWJ 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, EWJ currently yields 3.82% against 0.44% for QQQ.
Holdings Overlap
EWJ and QQQ share 0 holdings out of 271 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, EWJ or QQQ?
EWJ 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, EWJ or QQQ?
Over the past year EWJ returned +30.00% vs +26.68% for QQQ, so EWJ leads on 1-year performance. Over the longest common window we track (27 years), EWJ annualized +1.91% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, EWJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.7% for EWJ. Worst drawdown: EWJ -62.2% vs QQQ -83.0%.
Should I hold both EWJ and QQQ?
EWJ 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 EWJ and QQQ?
EWJ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 271 unique securities.
Which pays a higher dividend, EWJ or QQQ?
EWJ yields 3.82% while QQQ yields 0.44%, so EWJ currently pays the higher dividend yield.
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