KEUA vs QQQ
KraneShares European Carbon Allowance Strategy ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | KEUA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.87% | 0.18% | |
| AUM | $5M | $496.3B | |
| Dividend Yield | 2.82% | 0.44% | |
| Holdings | 7 | 108 | |
| YTD Return | -19.94% | +16.64% | |
| 1Y Return | +4.65% | +27.27% | |
| 3Y Return (annualized) | -7.86% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 33.8% | 30.6% | |
| Max Drawdown | -49.2% | -83.0% | |
| Fund Family | KraneShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 4, 2021 | Mar 10, 1999 |
KEUA vs QQQ Performance
KraneShares European Carbon Allowance Strategy ETF (KEUA) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KEUA returned +4.65% while QQQ returned +27.27%. Year to date, KEUA is down 19.94% versus a gain of 16.64% for QQQ.
Over three years, KEUA compounded at -7.86% per year against +25.96% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +0.73%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KEUA has been the more volatile fund, with annualized monthly volatility of 33.8% compared with 30.6% for QQQ. 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 -49.2% for KEUA 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KEUA charges 0.87% per year while QQQ charges 0.18%. On a $10,000 position that is $87 vs $18 annually, a gap of $69 per year that compounds over a long holding period. On income, KEUA currently yields 2.82% against 0.44% for QQQ.
Holdings Overlap
KEUA and QQQ share 0 holdings out of 104 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, KEUA or QQQ?
KEUA has an expense ratio of 0.87% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, KEUA or QQQ?
Over the past year KEUA returned +4.65% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), KEUA annualized +0.73% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, KEUA or QQQ?
KEUA has been the more volatile fund at 33.8% annualized versus 30.6% for QQQ. Worst drawdown: KEUA -49.2% vs QQQ -83.0%.
Should I hold both KEUA and QQQ?
KEUA and QQQ have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KEUA and QQQ?
KEUA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, KEUA or QQQ?
KEUA yields 2.82% while QQQ yields 0.44%, so KEUA currently pays the higher dividend yield.
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