FEUS vs QQQ
FlexShares ESG & Climate US Large Cap Core Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
FEUS has a lower expense ratio. QQQ delivered stronger 1-year returns. FEUS offers more diversification with 171 holdings.
Side-by-Side Comparison
| Metric | FEUS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.18% | |
| AUM | $117M | $496.3B | |
| Dividend Yield | 0.99% | 0.44% | |
| Holdings | 171 | 108 | |
| YTD Return | +13.97% | +16.19% | |
| 1Y Return | +20.60% | +25.22% | |
| 3Y Return (annualized) | +20.13% | +25.47% | |
| 5Y Return (annualized) | +12.55% | +14.34% | |
| Volatility (annualized) | 16.1% | 30.6% | |
| Max Drawdown | -25.3% | -83.0% | |
| Fund Family | Flexshares Trust | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2021 | Mar 10, 1999 |
FEUS vs QQQ Performance
FlexShares ESG & Climate US Large Cap Core Index Fund (FEUS) is a ETF from Flexshares Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FEUS returned +20.60% while QQQ returned +25.22%. Year to date, FEUS is up 13.97% versus a gain of 16.19% for QQQ.
Over three years, FEUS compounded at +20.13% per year against +25.47% for QQQ; over five years the annualized figures are +12.55% and +14.34% respectively. Across the full 5-year window we track, QQQ has the edge at +13.01% annualized vs +12.55%. 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 16.1% for FEUS. 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 -25.3% for FEUS 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FEUS charges 0.09% per year while QQQ charges 0.18%. On a $10,000 position that is $9 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, FEUS currently yields 0.99% against 0.44% for QQQ.
Holdings Overlap
FEUS and QQQ share 43 holdings out of 234 unique holdings combined, representing a 51.7% weight overlap.
High overlap means holding both may not provide much additional diversification.
Frequently Asked Questions
Which is cheaper, FEUS or QQQ?
FEUS has an expense ratio of 0.09% while QQQ charges 0.18%. FEUS is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, FEUS or QQQ?
Over the past year FEUS returned +20.60% vs +25.22% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), FEUS annualized +12.55% vs +13.01% for QQQ. Past performance does not guarantee future results.
Which is riskier, FEUS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.1% for FEUS. Worst drawdown: FEUS -25.3% vs QQQ -83.0%.
Should I hold both FEUS and QQQ?
FEUS and QQQ have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FEUS and QQQ?
FEUS and QQQ share 43 common holdings with a 51.7% weight overlap. Combined, they hold 234 unique securities.
Which pays a higher dividend, FEUS or QQQ?
FEUS yields 0.99% while QQQ yields 0.44%, so FEUS currently pays the higher dividend yield.
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