HERZ vs QQQ
Herzfeld Caribbean Basin Fund Inc 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 | HERZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 3.45% | 0.18% | |
| AUM | - | $496.3B | |
| Dividend Yield | - | 0.44% | |
| Holdings | 29 | 108 | |
| YTD Return | -24.57% | +16.64% | |
| 1Y Return | -6.71% | +27.27% | |
| 3Y Return (annualized) | -2.97% | +25.96% | |
| 5Y Return (annualized) | -2.79% | +14.54% | |
| Volatility (annualized) | 32.5% | 30.6% | |
| Max Drawdown | -84.7% | -83.0% | |
| Fund Family | Herzfeld-Cuba | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 20, 1994 | Mar 10, 1999 |
HERZ vs QQQ Performance
Herzfeld Caribbean Basin Fund Inc (HERZ) is a ETF from Herzfeld-Cuba and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HERZ returned -6.71% while QQQ returned +27.27%. Year to date, HERZ is down 24.57% versus a gain of 16.64% for QQQ.
Over three years, HERZ compounded at -2.97% per year against +25.96% for QQQ; over five years the annualized figures are -2.79% and +14.54% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs -0.23%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HERZ has been the more volatile fund, with annualized monthly volatility of 32.5% 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 -84.7% for HERZ 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HERZ charges 3.45% per year while QQQ charges 0.18%. On a $10,000 position that is $345 vs $18 annually, a gap of $327 per year that compounds over a long holding period.
Holdings Overlap
HERZ and QQQ share 0 holdings out of 121 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, HERZ or QQQ?
HERZ has an expense ratio of 3.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $327 per year of difference.
Which performed better, HERZ or QQQ?
Over the past year HERZ returned -6.71% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), HERZ annualized -0.23% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HERZ or QQQ?
HERZ has been the more volatile fund at 32.5% annualized versus 30.6% for QQQ. Worst drawdown: HERZ -84.7% vs QQQ -83.0%.
Should I hold both HERZ and QQQ?
HERZ and QQQ have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HERZ and QQQ?
HERZ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 121 unique securities.
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