HECA vs QQQ
Hedgeye Capital Allocation 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 | HECA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.02% | 0.18% | |
| AUM | $289M | $455.8B | |
| Dividend Yield | 2.04% | 0.41% | |
| Holdings | 22 | 108 | |
| YTD Return | +0.25% | +19.68% | |
| 1Y Return | +10.97% | +26.75% | |
| 3Y Return (annualized) | - | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 12.5% | 30.6% | |
| Max Drawdown | -12.8% | -83.0% | |
| Fund Family | Hedgeye Asset Management | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 30, 2025 | Mar 10, 1999 |
HECA vs QQQ Performance
Hedgeye Capital Allocation ETF (HECA) is a ETF from Hedgeye Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HECA returned +10.97% while QQQ returned +26.75%. Year to date, HECA is up 0.25% versus a gain of 19.68% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.5% for HECA. 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 -12.8% for HECA 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 0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HECA charges 1.02% per year while QQQ charges 0.18%. On a $10,000 position that is $102 vs $18 annually, a gap of $84 per year that compounds over a long holding period. On income, HECA currently yields 2.04% against 0.41% for QQQ.
Holdings Overlap
HECA and QQQ share 14 holdings out of 137 unique holdings combined, representing a 34.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HECA or QQQ?
HECA has an expense ratio of 1.02% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $84 per year of difference.
Which performed better, HECA or QQQ?
Over the past year HECA returned +10.97% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), HECA annualized +11.99% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, HECA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.5% for HECA. Worst drawdown: HECA -12.8% vs QQQ -83.0%.
Should I hold both HECA and QQQ?
HECA and QQQ have a monthly-return correlation of 0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HECA and QQQ?
HECA and QQQ share 14 common holdings with a 34.9% weight overlap. Combined, they hold 137 unique securities.
Which pays a higher dividend, HECA or QQQ?
HECA yields 2.04% while QQQ yields 0.41%, so HECA currently pays the higher dividend yield.
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