KOKU vs QQQ
Xtrackers MSCI Kokusai Equity ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
KOKU has a lower expense ratio. QQQ delivered stronger 1-year returns. KOKU offers more diversification with 1,144 holdings.
Side-by-Side Comparison
| Metric | KOKU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.18% | |
| AUM | $819M | $496.3B | |
| Dividend Yield | 1.43% | 0.44% | |
| Holdings | 1,144 | 108 | |
| YTD Return | +12.69% | +16.64% | |
| 1Y Return | +21.75% | +27.27% | |
| 3Y Return (annualized) | +21.59% | +25.96% | |
| 5Y Return (annualized) | +11.86% | +14.54% | |
| Volatility (annualized) | 15.3% | 30.6% | |
| Max Drawdown | -25.8% | -83.0% | |
| Fund Family | Xtrackers ETFs | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Apr 7, 2020 | Mar 10, 1999 |
KOKU vs QQQ Performance
Xtrackers MSCI Kokusai Equity ETF (KOKU) is a ETF from Xtrackers ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KOKU returned +21.75% while QQQ returned +27.27%. Year to date, KOKU is up 12.69% versus a gain of 16.64% for QQQ.
Over three years, KOKU compounded at +21.59% per year against +25.96% for QQQ; over five years the annualized figures are +11.86% and +14.54% respectively. Across the full 6-year window we track, KOKU has the edge at +18.15% annualized vs +13.03%. 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 15.3% for KOKU. 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 -25.8% for KOKU 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 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KOKU charges 0.09% per year while QQQ charges 0.18%. On a $10,000 position that is $9 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, KOKU currently yields 1.43% against 0.44% for QQQ.
Holdings Overlap
KOKU and QQQ share 96 holdings out of 1115 unique holdings combined, representing a 40.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, KOKU or QQQ?
KOKU has an expense ratio of 0.09% while QQQ charges 0.18%. KOKU is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, KOKU or QQQ?
Over the past year KOKU returned +21.75% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), KOKU annualized +18.15% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, KOKU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.3% for KOKU. Worst drawdown: KOKU -25.8% vs QQQ -83.0%.
Should I hold both KOKU and QQQ?
KOKU and QQQ have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KOKU and QQQ?
KOKU and QQQ share 96 common holdings with a 40.1% weight overlap. Combined, they hold 1115 unique securities.
Which pays a higher dividend, KOKU or QQQ?
KOKU yields 1.43% while QQQ yields 0.44%, so KOKU currently pays the higher dividend yield.
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