HAP vs QQQ

Quick Verdict

QQQ has a lower expense ratio. HAP delivered stronger 1-year returns. HAP offers more diversification with 120 holdings.

Lower Fees: QQQHigher Returns: HAPMore Diversified: HAP

Side-by-Side Comparison

MetricHAPQQQWinner
Expense Ratio0.41%0.18%
AUM$294M$455.8B
Dividend Yield1.99%0.41%
Holdings146108
YTD Return+19.04%+18.20%
1Y Return+40.52%+27.63%
3Y Return (annualized)+15.42%+25.54%
5Y Return (annualized)+12.17%+15.12%
Volatility (annualized)20.1%30.6%
Max Drawdown-50.7%-83.0%
Fund FamilyVanEckInvesco (US)
CategoryEquityEquity
InceptionAug 29, 2008Mar 10, 1999

HAP vs QQQ Performance

VanEck Natural Resources ETF (HAP) is a ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HAP returned +40.52% while QQQ returned +27.63%. Year to date, HAP is up 19.04% versus a gain of 18.20% for QQQ.

Over three years, HAP compounded at +15.42% per year against +25.54% for QQQ; over five years the annualized figures are +12.17% and +15.12% respectively. Across the full 18-year window we track, QQQ has the edge at +13.11% annualized vs +6.00%. 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 20.1% for HAP. 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 -50.7% for HAP 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HAP charges 0.41% per year while QQQ charges 0.18%. On a $10,000 position that is $41 vs $18 annually, a gap of $23 per year that compounds over a long holding period. On income, HAP currently yields 1.99% against 0.41% for QQQ.

Holdings Overlap

0.5%overlap

HAP and QQQ share 2 holdings out of 221 unique holdings combined, representing a 0.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HAPWeight in QQQDifference
FANG0.35%0.24%0.11%
BKR0.32%0.25%0.07%

Frequently Asked Questions

Which is cheaper, HAP or QQQ?

HAP has an expense ratio of 0.41% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $23 per year of difference.

Which performed better, HAP or QQQ?

Over the past year HAP returned +40.52% vs +27.63% for QQQ, so HAP leads on 1-year performance. Over the longest common window we track (18 years), HAP annualized +6.00% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, HAP or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 20.1% for HAP. Worst drawdown: HAP -50.7% vs QQQ -83.0%.

Should I hold both HAP and QQQ?

HAP and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HAP and QQQ?

HAP and QQQ share 2 common holdings with a 0.5% weight overlap. Combined, they hold 221 unique securities.

Which pays a higher dividend, HAP or QQQ?

HAP yields 1.99% while QQQ yields 0.41%, so HAP currently pays the higher dividend yield.

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