EWU vs QQQ
iShares MSCI United Kingdom 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 | EWU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $3.9B | $496.3B | |
| Dividend Yield | 3.07% | 0.44% | |
| Holdings | 74 | 108 | |
| YTD Return | +11.65% | +16.64% | |
| 1Y Return | +21.46% | +27.27% | |
| 3Y Return (annualized) | +20.51% | +25.96% | |
| 5Y Return (annualized) | +12.58% | +14.54% | |
| Volatility (annualized) | 16.6% | 30.6% | |
| Max Drawdown | -66.9% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 12, 1996 | Mar 10, 1999 |
EWU vs QQQ Performance
iShares MSCI United Kingdom ETF (EWU) 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 EWU returned +21.46% while QQQ returned +27.27%. Year to date, EWU is up 11.65% versus a gain of 16.64% for QQQ.
Over three years, EWU compounded at +20.51% per year against +25.96% for QQQ; over five years the annualized figures are +12.58% and +14.54% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs +2.93%. 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 16.6% for EWU. 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 -66.9% for EWU 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
EWU charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, EWU currently yields 3.07% against 0.44% for QQQ.
Holdings Overlap
EWU and QQQ share 0 holdings out of 171 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, EWU or QQQ?
EWU has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, EWU or QQQ?
Over the past year EWU returned +21.46% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), EWU annualized +2.93% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, EWU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.6% for EWU. Worst drawdown: EWU -66.9% vs QQQ -83.0%.
Should I hold both EWU and QQQ?
EWU 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 EWU and QQQ?
EWU and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 171 unique securities.
Which pays a higher dividend, EWU or QQQ?
EWU yields 3.07% while QQQ yields 0.44%, so EWU currently pays the higher dividend yield.
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