GSEU vs QQQ
Goldman Sachs ActiveBeta Europe Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. GSEU offers more diversification with 353 holdings.
Side-by-Side Comparison
| Metric | GSEU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $123M | $496.3B | |
| Dividend Yield | 2.73% | 0.44% | |
| Holdings | 353 | 108 | |
| YTD Return | +12.08% | +16.64% | |
| 1Y Return | +20.40% | +27.27% | |
| 3Y Return (annualized) | +18.79% | +25.96% | |
| 5Y Return (annualized) | +9.02% | +14.54% | |
| Volatility (annualized) | 16.1% | 30.6% | |
| Max Drawdown | -39.4% | -83.0% | |
| Fund Family | Goldman Sachs Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 2, 2016 | Mar 10, 1999 |
GSEU vs QQQ Performance
Goldman Sachs ActiveBeta Europe Equity ETF (GSEU) is a ETF from Goldman Sachs Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GSEU returned +20.40% while QQQ returned +27.27%. Year to date, GSEU is up 12.08% versus a gain of 16.64% for QQQ.
Over three years, GSEU compounded at +18.79% per year against +25.96% for QQQ; over five years the annualized figures are +9.02% and +14.54% respectively. Across the full 11-year window we track, QQQ has the edge at +13.03% annualized vs +8.35%. 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 GSEU. 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 -39.4% for GSEU 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GSEU charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, GSEU currently yields 2.73% against 0.44% for QQQ.
Holdings Overlap
GSEU and QQQ share 1 holdings out of 441 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in GSEU | Weight in QQQ | Difference |
|---|---|---|---|
| FER:AS | 0.19% | 0.21% | 0.02% |
Frequently Asked Questions
Which is cheaper, GSEU or QQQ?
GSEU has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, GSEU or QQQ?
Over the past year GSEU returned +20.40% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), GSEU annualized +8.35% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, GSEU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.1% for GSEU. Worst drawdown: GSEU -39.4% vs QQQ -83.0%.
Should I hold both GSEU and QQQ?
GSEU and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GSEU and QQQ?
GSEU and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 441 unique securities.
Which pays a higher dividend, GSEU or QQQ?
GSEU yields 2.73% while QQQ yields 0.44%, so GSEU currently pays the higher dividend yield.
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