HFXI vs QQQ
NYLI FTSE International Equity Currency Neutral ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. HFXI delivered stronger 1-year returns. HFXI offers more diversification with 876 holdings.
Side-by-Side Comparison
| Metric | HFXI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.18% | |
| AUM | $2.1B | $496.3B | |
| Dividend Yield | 3.39% | 0.44% | |
| Holdings | 876 | 108 | |
| YTD Return | +17.30% | +16.64% | |
| 1Y Return | +29.54% | +27.27% | |
| 3Y Return (annualized) | +21.69% | +25.96% | |
| 5Y Return (annualized) | +12.45% | +14.54% | |
| Volatility (annualized) | 13.8% | 30.6% | |
| Max Drawdown | -34.2% | -83.0% | |
| Fund Family | INDEXIQ ETF TRUST | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 22, 2015 | Mar 10, 1999 |
HFXI vs QQQ Performance
NYLI FTSE International Equity Currency Neutral ETF (HFXI) is a ETF from INDEXIQ ETF TRUST and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HFXI returned +29.54% while QQQ returned +27.27%. Year to date, HFXI is up 17.30% versus a gain of 16.64% for QQQ.
Over three years, HFXI compounded at +21.69% per year against +25.96% for QQQ; over five years the annualized figures are +12.45% and +14.54% respectively. Across the full 11-year window we track, QQQ has the edge at +13.03% annualized vs +7.92%. 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 13.8% for HFXI. 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 -34.2% for HFXI 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HFXI charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, HFXI currently yields 3.39% against 0.44% for QQQ.
Holdings Overlap
HFXI and QQQ share 2 holdings out of 842 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HFXI or QQQ?
HFXI has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, HFXI or QQQ?
Over the past year HFXI returned +29.54% vs +27.27% for QQQ, so HFXI leads on 1-year performance. Over the longest common window we track (11 years), HFXI annualized +7.92% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HFXI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.8% for HFXI. Worst drawdown: HFXI -34.2% vs QQQ -83.0%.
Should I hold both HFXI and QQQ?
HFXI and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HFXI and QQQ?
HFXI and QQQ share 2 common holdings with a 0.8% weight overlap. Combined, they hold 842 unique securities.
Which pays a higher dividend, HFXI or QQQ?
HFXI yields 3.39% while QQQ yields 0.44%, so HFXI currently pays the higher dividend yield.
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