GENZ vs QQQ
VanEck Digital Native Economy 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 | GENZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.51% | 0.18% | |
| AUM | $17M | $496.3B | |
| Dividend Yield | 3.54% | 0.44% | |
| Holdings | 40 | 108 | |
| YTD Return | -1.38% | +16.64% | |
| 1Y Return | -8.16% | +27.27% | |
| 3Y Return (annualized) | +0.94% | +25.96% | |
| 5Y Return (annualized) | -1.58% | +14.54% | |
| Volatility (annualized) | 26.3% | 30.6% | |
| Max Drawdown | -71.1% | -83.0% | |
| Fund Family | VanEck | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 22, 2008 | Mar 10, 1999 |
GENZ vs QQQ Performance
VanEck Digital Native Economy ETF (GENZ) is a ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GENZ returned -8.16% while QQQ returned +27.27%. Year to date, GENZ is down 1.38% versus a gain of 16.64% for QQQ.
Over three years, GENZ compounded at +0.94% per year against +25.96% for QQQ; over five years the annualized figures are -1.58% and +14.54% respectively. Across the full 19-year window we track, QQQ has the edge at +13.03% annualized vs +2.29%. 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 26.3% for GENZ. 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 -71.1% for GENZ 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
GENZ charges 0.51% per year while QQQ charges 0.18%. On a $10,000 position that is $51 vs $18 annually, a gap of $33 per year that compounds over a long holding period. On income, GENZ currently yields 3.54% against 0.44% for QQQ.
Holdings Overlap
GENZ and QQQ share 5 holdings out of 133 unique holdings combined, representing a 1.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GENZ or QQQ?
GENZ has an expense ratio of 0.51% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, GENZ or QQQ?
Over the past year GENZ returned -8.16% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), GENZ annualized +2.29% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, GENZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 26.3% for GENZ. Worst drawdown: GENZ -71.1% vs QQQ -83.0%.
Should I hold both GENZ and QQQ?
GENZ and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GENZ and QQQ?
GENZ and QQQ share 5 common holdings with a 1.8% weight overlap. Combined, they hold 133 unique securities.
Which pays a higher dividend, GENZ or QQQ?
GENZ yields 3.54% while QQQ yields 0.44%, so GENZ currently pays the higher dividend yield.
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