FEZ vs QQQ

FEZ vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricFEZQQQWinner
Expense Ratio0.29%0.18%
AUM$4.5B$496.3B
Dividend Yield2.56%0.44%
Holdings55108
YTD Return+10.97%+16.23%
1Y Return+20.17%+26.23%
3Y Return (annualized)+20.35%+25.75%
5Y Return (annualized)+11.94%+14.78%
Volatility (annualized)21.2%30.6%
Max Drawdown-66.2%-83.0%
Fund FamilySPDR State Street Global AdvisorsInvesco (US)
CategoryEquityEquity
InceptionOct 15, 2002Mar 10, 1999

FEZ vs QQQ Performance

State Street SPDR EURO STOXX 50 ETF (FEZ) is a ETF from SPDR State Street Global Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FEZ returned +20.17% while QQQ returned +26.23%. Year to date, FEZ is up 10.97% versus a gain of 16.23% for QQQ.

Over three years, FEZ compounded at +20.35% per year against +25.75% for QQQ; over five years the annualized figures are +11.94% and +14.78% respectively. Across the full 24-year window we track, QQQ has the edge at +13.02% annualized vs +5.20%. 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 21.2% for FEZ. 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 -66.2% for FEZ 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FEZ charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, FEZ currently yields 2.56% against 0.44% for QQQ.

Holdings Overlap

0.7%overlap

FEZ and QQQ share 1 holdings out of 149 unique holdings combined, representing a 0.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FEZWeight in QQQDifference
ASL:AS9.72%0.68%9.04%

Frequently Asked Questions

Which is cheaper, FEZ or QQQ?

FEZ has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, FEZ or QQQ?

Over the past year FEZ returned +20.17% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), FEZ annualized +5.20% vs +13.02% for QQQ. Past performance does not guarantee future results.

Which is riskier, FEZ or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 21.2% for FEZ. Worst drawdown: FEZ -66.2% vs QQQ -83.0%.

Should I hold both FEZ and QQQ?

FEZ and QQQ have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FEZ and QQQ?

FEZ and QQQ share 1 common holdings with a 0.7% weight overlap. Combined, they hold 149 unique securities.

Which pays a higher dividend, FEZ or QQQ?

FEZ yields 2.56% while QQQ yields 0.44%, so FEZ currently pays the higher dividend yield.

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