HLAL vs QQQ

HLAL vs QQQ

Which is better, HLAL or QQQ?

Large Cap Blend against Large Cap Growth.

QQQ has a lower expense ratio. HLAL led over 1Y, QQQ over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 57.7%.

Lower Fees: QQQHigher Returns: splitLess Concentrated: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricHLALQQQ
Expense Ratio0.50%0.18%Best
AUM$945M$486.1B
Dividend Yield0.46%0.44%
Holdings213107
YTD Return+18.39%Best+17.33%
1Y Return+29.74%Best+26.50%
3Y Return (annualized)+19.73%+24.58%Best
5Y Return (annualized)+13.78%+14.15%Best
Volatility (annualized)17.9%Best20.4%
Max Drawdown-33.6%Best-35.1%
$10,000 over 5 years$19,069$19,381Best
Top 10 Weight57.7%46.5%Best
Fund FamilyWahed InvestInvesco (US)
CategoryEquityEquity
StyleLarge Cap BlendLarge Cap Growth
InceptionJul 15, 2019Mar 10, 1999

Volatility and max drawdown are measured over the window both funds cover: Jul 16, 2019 to Sep 3, 2026 (7.1 years).

HLAL vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 7.1 years both funds cover.

HLAL vs QQQ Performance

Wahed FTSE USA Shariah ETF (HLAL) is an ETF from Wahed Invest and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year HLAL returned +29.74% while QQQ returned +26.50%. Year to date, HLAL is up 18.39% versus a gain of 17.33% for QQQ.

Over three years, HLAL compounded at +19.73% per year against +24.58% for QQQ; over five years the annualized figures are +13.78% and +14.15% respectively. Across the full 7-year window we track, QQQ has the edge at +20.74% annualized vs +17.05%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 20.4% compared with 17.9% for HLAL. 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 -33.6% for HLAL and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

HLAL 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, HLAL currently yields 0.46% against 0.44% for QQQ.

Holdings Overlap

HLAL already in QQQ71.6%
QQQ already in HLAL69.6%

71.6% of HLAL's money is in holdings QQQ also owns. 69.6% of QQQ's money is in holdings HLAL also owns.

Most of HLAL is already inside QQQ. Owning both mostly buys the same companies twice.

50 positions in common, counted across the 210 positions we hold weights for in HLAL and 102 in QQQ, against full books of 213 and 107.

What only one of them owns

Our book lists 46 positions for QQQ that do not appear in our book for HLAL (27.9% of the fund), and 156 for HLAL that do not appear in QQQ (27.7%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in HLALWeight in QQQDifference
NVDANvidia Corp.12.79%8.44%4.35%
AAPLApple, Inc11.41%7.27%4.14%
MSFTMicrosoft Corp 4.100 Feb 06 379.10%5.76%3.34%
GOOGLAlphabet Inc.Class A5.10%3.36%1.74%
AVGOBroadcom Inc4.50%3.16%1.34%
GOOGAlphabet Inc. C4.13%3.13%1.00%
MUMicron Technology, Inc.2.70%4.43%1.73%
METAMeta Platform Inc 3.04%2.78%0.26%
AMDAdvanced Micro Devices Inc2.00%3.45%1.45%
TSLATesla Motors Inc2.50%2.56%0.06%

71.6% of HLAL is already inside QQQ.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

HLALQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, HLAL or QQQ?

HLAL has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option, by $32 a year on a $10,000 investment.

Which performed better, HLAL or QQQ?

Over the past year HLAL returned +29.74% vs +26.50% for QQQ, so HLAL leads on 1-year performance. Over the longest common window we track (7 years), HLAL annualized +17.05% vs +20.74% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, HLAL or QQQ?

QQQ has been the more volatile fund at 20.4% annualized versus 17.9% for HLAL. Worst drawdown: HLAL -33.6% vs QQQ -35.1%.

Should I hold both HLAL and QQQ?

HLAL and QQQ have a monthly-return correlation of 0.93, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between HLAL and QQQ?

71.6% of HLAL's money is in holdings QQQ also owns. 69.6% of QQQ's is in holdings HLAL also owns. They hold 50 positions in common, counted across the 210 positions we hold weights for in HLAL and 102 in QQQ.

Which pays a higher dividend, HLAL or QQQ?

HLAL yields 0.46% while QQQ yields 0.44%, so HLAL currently pays the higher dividend yield.

Is QQQ better than HLAL?

QQQ has a lower expense ratio. HLAL led over 1Y, QQQ over 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.93. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 57.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.