HEDJ vs QQQ
WisdomTree Europe Hedged Equity Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HEDJ offers more diversification with 133 holdings.
Side-by-Side Comparison
| Metric | HEDJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.58% | 0.18% | |
| AUM | $1.9B | $496.3B | |
| Dividend Yield | 1.78% | 0.44% | |
| Holdings | 133 | 108 | |
| YTD Return | +8.79% | +16.64% | |
| 1Y Return | +16.19% | +27.27% | |
| 3Y Return (annualized) | +15.37% | +25.96% | |
| 5Y Return (annualized) | +10.53% | +14.54% | |
| Volatility (annualized) | 15.5% | 30.6% | |
| Max Drawdown | -38.2% | -83.0% | |
| Fund Family | WisdomTree Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 31, 2009 | Mar 10, 1999 |
HEDJ vs QQQ Performance
WisdomTree Europe Hedged Equity Fund (HEDJ) is a ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HEDJ returned +16.19% while QQQ returned +27.27%. Year to date, HEDJ is up 8.79% versus a gain of 16.64% for QQQ.
Over three years, HEDJ compounded at +15.37% per year against +25.96% for QQQ; over five years the annualized figures are +10.53% and +14.54% respectively. Across the full 17-year window we track, QQQ has the edge at +13.03% annualized vs +6.46%. 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 15.5% for HEDJ. 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 HEDJ 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEDJ charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, HEDJ currently yields 1.78% against 0.44% for QQQ.
Holdings Overlap
HEDJ and QQQ share 1 holdings out of 231 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HEDJ | Weight in QQQ | Difference |
|---|---|---|---|
| FER:AS | 1.30% | 0.21% | 1.09% |
Frequently Asked Questions
Which is cheaper, HEDJ or QQQ?
HEDJ has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, HEDJ or QQQ?
Over the past year HEDJ returned +16.19% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), HEDJ annualized +6.46% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HEDJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.5% for HEDJ. Worst drawdown: HEDJ -38.2% vs QQQ -83.0%.
Should I hold both HEDJ and QQQ?
HEDJ and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEDJ and QQQ?
HEDJ and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 231 unique securities.
Which pays a higher dividend, HEDJ or QQQ?
HEDJ yields 1.78% while QQQ yields 0.44%, so HEDJ currently pays the higher dividend yield.
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