LSEQ vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. LSEQ offers more diversification with 153 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: LSEQ

Side-by-Side Comparison

MetricLSEQQQQWinner
Expense Ratio2.28%0.18%
AUM$16M$455.8B
Dividend Yield1.71%0.41%
Holdings156108
YTD Return+18.26%+18.20%
1Y Return+20.40%+27.63%
3Y Return (annualized)-+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)14.5%30.6%
Max Drawdown-10.9%-83.0%
Fund FamilyHarbor FundsInvesco (US)
CategoryEquityEquity
InceptionDec 3, 2023Mar 10, 1999

LSEQ vs QQQ Performance

Harbor Long-Short Equity ETF (LSEQ) is a ETF from Harbor Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LSEQ returned +20.40% while QQQ returned +27.63%. Year to date, LSEQ is up 18.26% versus a gain of 18.20% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 14.5% for LSEQ. 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 -10.9% for LSEQ 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 0.18. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LSEQ charges 2.28% per year while QQQ charges 0.18%. On a $10,000 position that is $228 vs $18 annually, a gap of $210 per year that compounds over a long holding period. On income, LSEQ currently yields 1.71% against 0.41% for QQQ.

Holdings Overlap

6.4%overlap

LSEQ and QQQ share 19 holdings out of 237 unique holdings combined, representing a 6.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in LSEQWeight in QQQDifference
WMT1.38%2.47%1.09%
WBD3.52%0.30%3.22%
MSFT-1.34%4.65%5.99%
SNDKProProPro
METAProProPro
WDCProProPro
AMGNProProPro
GILDProProPro
MARProProPro
ROSTProProPro
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Frequently Asked Questions

Which is cheaper, LSEQ or QQQ?

LSEQ has an expense ratio of 2.28% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $210 per year of difference.

Which performed better, LSEQ or QQQ?

Over the past year LSEQ returned +20.40% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), LSEQ annualized +12.88% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, LSEQ or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 14.5% for LSEQ. Worst drawdown: LSEQ -10.9% vs QQQ -83.0%.

Should I hold both LSEQ and QQQ?

LSEQ and QQQ have a monthly-return correlation of 0.18, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LSEQ and QQQ?

LSEQ and QQQ share 19 common holdings with a 6.4% weight overlap. Combined, they hold 237 unique securities.

Which pays a higher dividend, LSEQ or QQQ?

LSEQ yields 1.71% while QQQ yields 0.41%, so LSEQ currently pays the higher dividend yield.

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