IEV vs QQQ
iShares Europe ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. IEV offers more diversification with 374 holdings.
Side-by-Side Comparison
| Metric | IEV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $1.7B | $496.3B | |
| Dividend Yield | 2.72% | 0.44% | |
| Holdings | 374 | 108 | |
| YTD Return | +11.19% | +16.64% | |
| 1Y Return | +21.03% | +27.27% | |
| 3Y Return (annualized) | +18.81% | +25.96% | |
| 5Y Return (annualized) | +9.90% | +14.54% | |
| Volatility (annualized) | 18.2% | 30.6% | |
| Max Drawdown | -65.6% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 25, 2000 | Mar 10, 1999 |
IEV vs QQQ Performance
iShares Europe ETF (IEV) 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 IEV returned +21.03% while QQQ returned +27.27%. Year to date, IEV is up 11.19% versus a gain of 16.64% for QQQ.
Over three years, IEV compounded at +18.81% per year against +25.96% for QQQ; over five years the annualized figures are +9.90% and +14.54% respectively. Across the full 26-year window we track, QQQ has the edge at +13.03% annualized vs +3.29%. 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 18.2% for IEV. 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 -65.6% for IEV 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEV charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, IEV currently yields 2.72% against 0.44% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, IEV or QQQ?
IEV has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, IEV or QQQ?
Over the past year IEV returned +21.03% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (26 years), IEV annualized +3.29% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, IEV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.2% for IEV. Worst drawdown: IEV -65.6% vs QQQ -83.0%.
Should I hold both IEV and QQQ?
IEV and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEV and QQQ?
IEV and QQQ share 2 common holdings with a 0.4% weight overlap. Combined, they hold 461 unique securities.
Which pays a higher dividend, IEV or QQQ?
IEV yields 2.72% while QQQ yields 0.44%, so IEV currently pays the higher dividend yield.
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