HDEF vs QQQ
Xtrackers MSCI EAFE High Dividend Yield Equity ETF vs Invesco QQQ Trust, Series 1
Which is better, HDEF or QQQ?
Large Cap Value against Large Cap Growth.
HDEF has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. HDEF is less concentrated, with 41.5% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | HDEF | QQQ |
|---|---|---|
| Expense Ratio | 0.09%Best | 0.18% |
| AUM | $2.4B | $483.5B |
| Dividend Yield | 3.69% | 0.44% |
| Holdings | 123 | 107 |
| YTD Return | +10.29% | +15.86%Best |
| 1Y Return | +16.88% | +22.63%Best |
| 3Y Return (annualized) | +18.22% | +24.15%Best |
| 5Y Return (annualized) | +12.02% | +14.16%Best |
| Volatility (annualized) | 14.7%Best | 18.8% |
| Max Drawdown | -38.2% | -35.1%Best |
| $10,000 over 5 years | $17,639 | $19,390Best |
| Top 10 Weight | 41.5%Best | 46.5% |
| Fund Family | Xtrackers ETFs | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Aug 12, 2015 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Aug 18, 2015 to Sep 10, 2026 (11.1 years).
HDEF vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 11.1 years both funds cover.
HDEF vs QQQ Performance
Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) is an ETF from Xtrackers ETFs and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year HDEF returned +16.88% while QQQ returned +22.63%. Year to date, HDEF is up 10.29% versus a gain of 15.86% for QQQ.
Over three years, HDEF compounded at +18.22% per year against +24.15% for QQQ; over five years the annualized figures are +12.02% and +14.16% respectively. Across the full 11-year window we track, QQQ has the edge at +18.60% annualized vs +5.30%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.8% 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 -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.52. They move together some of the time, and apart the rest.
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 3.69% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 112 holdings in HDEF and 102 in QQQ, totalling 99.1% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 112 positions we hold weights for in HDEF and 102 in QQQ, against full books of 123 and 107.
What only one of them owns
Our book lists 95 positions for QQQ that do not appear in our book for HDEF (97.0% of the fund), and 2 for HDEF that do not appear in QQQ (3.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of HDEF and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $9 a year on a $10,000 investment.
Which performed better, HDEF or QQQ?
Over the past year HDEF returned +16.88% vs +22.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), HDEF annualized +5.30% vs +18.60% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HDEF or QQQ?
QQQ has been the more volatile fund at 18.8% annualized versus 14.7% for HDEF. Worst drawdown: HDEF -38.2% vs QQQ -35.1%.
Should I hold both HDEF and QQQ?
HDEF and QQQ have a monthly-return correlation of 0.52, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, HDEF or QQQ?
HDEF yields 3.69% while QQQ yields 0.44%, so HDEF currently pays the higher dividend yield.
Is QQQ better than HDEF?
HDEF has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. HDEF is less concentrated, with 41.5% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.