HECO vs QQQ
State Street Galaxy Hedged Digital Asset Ecosystem ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. HECO delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | HECO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.90% | 0.18% | |
| AUM | $85M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 68 | 108 | |
| YTD Return | +49.59% | +16.23% | |
| 1Y Return | +86.00% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 50.0% | 30.6% | |
| Max Drawdown | -44.6% | -83.0% | |
| Fund Family | SPDR State Street Global Advisors | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 9, 2024 | Mar 10, 1999 |
HECO vs QQQ Performance
State Street Galaxy Hedged Digital Asset Ecosystem ETF (HECO) is a ETF from SPDR State Street Global Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HECO returned +86.00% while QQQ returned +26.23%. Year to date, HECO is up 49.59% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
HECO has been the more volatile fund, with annualized monthly volatility of 50.0% compared with 30.6% for QQQ. 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 -44.6% for HECO 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 0.82. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HECO charges 0.90% per year while QQQ charges 0.18%. On a $10,000 position that is $90 vs $18 annually, a gap of $72 per year that compounds over a long holding period. On income, HECO currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
HECO and QQQ share 8 holdings out of 125 unique holdings combined, representing a 18.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HECO or QQQ?
HECO has an expense ratio of 0.90% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, HECO or QQQ?
Over the past year HECO returned +86.00% vs +26.23% for QQQ, so HECO leads on 1-year performance. Over the longest common window we track (2 years), HECO annualized +62.62% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, HECO or QQQ?
HECO has been the more volatile fund at 50.0% annualized versus 30.6% for QQQ. Worst drawdown: HECO -44.6% vs QQQ -83.0%.
Should I hold both HECO and QQQ?
HECO and QQQ have a monthly-return correlation of 0.82, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HECO and QQQ?
HECO and QQQ share 8 common holdings with a 18.1% weight overlap. Combined, they hold 125 unique securities.
Which pays a higher dividend, HECO or QQQ?
HECO yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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