HEZU vs QQQ
iShares Currency Hedged MSCI Eurozone ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HEZU offers more diversification with 233 holdings.
Side-by-Side Comparison
| Metric | HEZU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.53% | 0.18% | |
| AUM | $591M | $496.3B | |
| Dividend Yield | 2.56% | 0.44% | |
| Holdings | 233 | 108 | |
| YTD Return | +13.75% | +16.64% | |
| 1Y Return | +22.99% | +27.27% | |
| 3Y Return (annualized) | +20.07% | +25.96% | |
| 5Y Return (annualized) | +12.94% | +14.54% | |
| Volatility (annualized) | 15.9% | 30.6% | |
| Max Drawdown | -38.8% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 9, 2014 | Mar 10, 1999 |
HEZU vs QQQ Performance
iShares Currency Hedged MSCI Eurozone ETF (HEZU) 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 HEZU returned +22.99% while QQQ returned +27.27%. Year to date, HEZU is up 13.75% versus a gain of 16.64% for QQQ.
Over three years, HEZU compounded at +20.07% per year against +25.96% for QQQ; over five years the annualized figures are +12.94% and +14.54% respectively. Across the full 12-year window we track, QQQ has the edge at +13.03% annualized vs +9.22%. 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 15.9% for HEZU. 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 -38.8% for HEZU 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEZU charges 0.53% per year while QQQ charges 0.18%. On a $10,000 position that is $53 vs $18 annually, a gap of $35 per year that compounds over a long holding period. On income, HEZU currently yields 2.56% against 0.44% for QQQ.
Holdings Overlap
HEZU and QQQ share 0 holdings out of 115 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, HEZU or QQQ?
HEZU has an expense ratio of 0.53% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, HEZU or QQQ?
Over the past year HEZU returned +22.99% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), HEZU annualized +9.22% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HEZU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.9% for HEZU. Worst drawdown: HEZU -38.8% vs QQQ -83.0%.
Should I hold both HEZU and QQQ?
HEZU and QQQ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEZU and QQQ?
HEZU and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 115 unique securities.
Which pays a higher dividend, HEZU or QQQ?
HEZU yields 2.56% while QQQ yields 0.44%, so HEZU currently pays the higher dividend yield.
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