HEQT vs QQQ
Simplify Hedged Equity 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 | HEQT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.18% | |
| AUM | $305M | $496.3B | |
| Dividend Yield | 1.19% | 0.44% | |
| Holdings | 11 | 108 | |
| YTD Return | +7.70% | +16.64% | |
| 1Y Return | +13.73% | +27.27% | |
| 3Y Return (annualized) | +14.03% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 7.9% | 30.6% | |
| Max Drawdown | -11.5% | -83.0% | |
| Fund Family | Simplify Exchange Traded Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 1, 2021 | Mar 10, 1999 |
HEQT vs QQQ Performance
Simplify Hedged Equity ETF (HEQT) is a ETF from Simplify Exchange Traded Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HEQT returned +13.73% while QQQ returned +27.27%. Year to date, HEQT is up 7.70% versus a gain of 16.64% for QQQ.
Over three years, HEQT compounded at +14.03% per year against +25.96% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs +9.30%. 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 7.9% for HEQT. 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 -11.5% for HEQT 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEQT charges 0.43% per year while QQQ charges 0.18%. On a $10,000 position that is $43 vs $18 annually, a gap of $25 per year that compounds over a long holding period. On income, HEQT currently yields 1.19% against 0.44% for QQQ.
Holdings Overlap
HEQT and QQQ share 0 holdings out of 103 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, HEQT or QQQ?
HEQT has an expense ratio of 0.43% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, HEQT or QQQ?
Over the past year HEQT returned +13.73% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), HEQT annualized +9.30% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HEQT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.9% for HEQT. Worst drawdown: HEQT -11.5% vs QQQ -83.0%.
Should I hold both HEQT and QQQ?
HEQT and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEQT and QQQ?
HEQT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, HEQT or QQQ?
HEQT yields 1.19% while QQQ yields 0.44%, so HEQT currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.