HDEF vs QQQ
Xtrackers MSCI EAFE High Dividend Yield Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
HDEF has a lower expense ratio. QQQ delivered stronger 1-year returns. HDEF offers more diversification with 123 holdings.
Side-by-Side Comparison
| Metric | HDEF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.18% | |
| AUM | $2.3B | $496.3B | |
| Dividend Yield | 3.68% | 0.44% | |
| Holdings | 123 | 108 | |
| YTD Return | +12.34% | +16.23% | |
| 1Y Return | +17.27% | +26.23% | |
| 3Y Return (annualized) | +19.58% | +25.75% | |
| 5Y Return (annualized) | +12.06% | +14.78% | |
| Volatility (annualized) | 14.7% | 30.6% | |
| Max Drawdown | -38.2% | -83.0% | |
| Fund Family | Xtrackers ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 12, 2015 | Mar 10, 1999 |
HDEF vs QQQ Performance
Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) is a ETF from Xtrackers ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HDEF returned +17.27% while QQQ returned +26.23%. Year to date, HDEF is up 12.34% versus a gain of 16.23% for QQQ.
Over three years, HDEF compounded at +19.58% per year against +25.75% for QQQ; over five years the annualized figures are +12.06% and +14.78% respectively. Across the full 11-year window we track, QQQ has the edge at +13.02% annualized vs +5.50%. 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 14.7% for HDEF. 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 -38.2% for HDEF 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HDEF 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, HDEF currently yields 3.68% against 0.44% for QQQ.
Holdings Overlap
HDEF and QQQ share 0 holdings out of 215 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HDEF or QQQ?
HDEF has an expense ratio of 0.09% while QQQ charges 0.18%. HDEF is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, HDEF or QQQ?
Over the past year HDEF returned +17.27% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), HDEF annualized +5.50% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, HDEF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.7% for HDEF. Worst drawdown: HDEF -38.2% vs QQQ -83.0%.
Should I hold both HDEF and QQQ?
HDEF and QQQ have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HDEF and QQQ?
HDEF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 215 unique securities.
Which pays a higher dividend, HDEF or QQQ?
HDEF yields 3.68% while QQQ yields 0.44%, so HDEF currently pays the higher dividend yield.
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