HEGD vs QQQ
Swan Hedged Equity US Large Cap 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 | HEGD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.87% | 0.18% | |
| AUM | $745M | $496.3B | |
| Dividend Yield | 0.34% | 0.44% | |
| Holdings | 10 | 108 | |
| YTD Return | +7.94% | +19.52% | |
| 1Y Return | +13.12% | +26.68% | |
| 3Y Return (annualized) | +14.11% | +26.64% | |
| 5Y Return (annualized) | +8.31% | +15.36% | |
| Volatility (annualized) | 8.7% | 30.6% | |
| Max Drawdown | -14.6% | -83.0% | |
| Fund Family | Swan Capital Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Dec 22, 2020 | Mar 10, 1999 |
HEGD vs QQQ Performance
Swan Hedged Equity US Large Cap ETF (HEGD) is a ETF from Swan Capital Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HEGD returned +13.12% while QQQ returned +26.68%. Year to date, HEGD is up 7.94% versus a gain of 19.52% for QQQ.
Over three years, HEGD compounded at +14.11% per year against +26.64% for QQQ; over five years the annualized figures are +8.31% and +15.36% respectively. Across the full 6-year window we track, QQQ has the edge at +13.14% annualized vs +9.73%. 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 8.7% for HEGD. 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 -14.6% for HEGD 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEGD charges 0.87% per year while QQQ charges 0.18%. On a $10,000 position that is $87 vs $18 annually, a gap of $69 per year that compounds over a long holding period. On income, HEGD currently yields 0.34% against 0.44% for QQQ.
Holdings Overlap
HEGD and QQQ share 0 holdings out of 104 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, HEGD or QQQ?
HEGD has an expense ratio of 0.87% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, HEGD or QQQ?
Over the past year HEGD returned +13.12% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), HEGD annualized +9.73% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, HEGD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.7% for HEGD. Worst drawdown: HEGD -14.6% vs QQQ -83.0%.
Should I hold both HEGD and QQQ?
HEGD and QQQ have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEGD and QQQ?
HEGD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, HEGD or QQQ?
HEGD yields 0.34% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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