HRTS vs QQQ
Tema Heart & Health ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. HRTS delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | HRTS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $56M | $496.3B | |
| Dividend Yield | 1.30% | 0.44% | |
| Holdings | 45 | 108 | |
| YTD Return | +8.06% | +16.23% | |
| 1Y Return | +31.67% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 17.6% | 30.6% | |
| Max Drawdown | -24.7% | -83.0% | |
| Fund Family | Tema Global Limited | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 20, 2023 | Mar 10, 1999 |
HRTS vs QQQ Performance
Tema Heart & Health ETF (HRTS) is a ETF from Tema Global Limited and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HRTS returned +31.67% while QQQ returned +26.23%. Year to date, HRTS is up 8.06% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 17.6% for HRTS. 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 -24.7% for HRTS 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
HRTS charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, HRTS currently yields 1.30% against 0.44% for QQQ.
Holdings Overlap
HRTS and QQQ share 7 holdings out of 139 unique holdings combined, representing a 3.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HRTS or QQQ?
HRTS has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, HRTS or QQQ?
Over the past year HRTS returned +31.67% vs +26.23% for QQQ, so HRTS leads on 1-year performance. Over the longest common window we track (3 years), HRTS annualized +15.86% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, HRTS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.6% for HRTS. Worst drawdown: HRTS -24.7% vs QQQ -83.0%.
Should I hold both HRTS and QQQ?
HRTS 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 HRTS and QQQ?
HRTS and QQQ share 7 common holdings with a 3.4% weight overlap. Combined, they hold 139 unique securities.
Which pays a higher dividend, HRTS or QQQ?
HRTS yields 1.30% while QQQ yields 0.44%, so HRTS currently pays the higher dividend yield.
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