HEWJ vs QQQ
iShares Currency Hedged MSCI Japan ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. HEWJ delivered stronger 1-year returns. HEWJ offers more diversification with 178 holdings.
Side-by-Side Comparison
| Metric | HEWJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $769M | $496.3B | |
| Dividend Yield | 4.14% | 0.44% | |
| Holdings | 178 | 108 | |
| YTD Return | +20.59% | +16.23% | |
| 1Y Return | +37.71% | +26.23% | |
| 3Y Return (annualized) | +28.70% | +25.75% | |
| 5Y Return (annualized) | +22.39% | +14.78% | |
| Volatility (annualized) | 14.9% | 30.6% | |
| Max Drawdown | -34.1% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 31, 2014 | Mar 10, 1999 |
HEWJ vs QQQ Performance
iShares Currency Hedged MSCI Japan ETF (HEWJ) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HEWJ returned +37.71% while QQQ returned +26.23%. Year to date, HEWJ is up 20.59% versus a gain of 16.23% for QQQ.
Over three years, HEWJ compounded at +28.70% per year against +25.75% for QQQ; over five years the annualized figures are +22.39% and +14.78% respectively. Across the full 13-year window we track, QQQ has the edge at +13.02% annualized vs +12.79%. 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 14.9% for HEWJ. 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 -34.1% for HEWJ 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEWJ charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, HEWJ currently yields 4.14% against 0.44% for QQQ.
Holdings Overlap
HEWJ and QQQ share 0 holdings out of 271 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, HEWJ or QQQ?
HEWJ has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, HEWJ or QQQ?
Over the past year HEWJ returned +37.71% vs +26.23% for QQQ, so HEWJ leads on 1-year performance. Over the longest common window we track (13 years), HEWJ annualized +12.79% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, HEWJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.9% for HEWJ. Worst drawdown: HEWJ -34.1% vs QQQ -83.0%.
Should I hold both HEWJ and QQQ?
HEWJ and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEWJ and QQQ?
HEWJ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 271 unique securities.
Which pays a higher dividend, HEWJ or QQQ?
HEWJ yields 4.14% while QQQ yields 0.44%, so HEWJ currently pays the higher dividend yield.
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