MEDI vs QQQ
Harbor Health Care 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 103 holdings.
Side-by-Side Comparison
| Metric | MEDI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.80% | 0.18% | |
| AUM | $42M | $455.8B | |
| Dividend Yield | 0.04% | 0.41% | |
| Holdings | 41 | 108 | |
| YTD Return | +8.59% | +19.68% | |
| 1Y Return | +26.14% | +26.75% | |
| 3Y Return (annualized) | +15.77% | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 16.2% | 30.6% | |
| Max Drawdown | -19.2% | -83.0% | |
| Fund Family | Harbor Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 16, 2022 | Mar 10, 1999 |
MEDI vs QQQ Performance
Harbor Health Care ETF (MEDI) is a ETF from Harbor Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MEDI returned +26.14% while QQQ returned +26.75%. Year to date, MEDI is up 8.59% versus a gain of 19.68% for QQQ.
Over three years, MEDI compounded at +15.77% per year against +26.25% for QQQ. Across the full 4-year window we track, MEDI has the edge at +16.56% annualized vs +13.15%. 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 16.2% for MEDI. 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 -19.2% for MEDI 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MEDI charges 0.80% per year while QQQ charges 0.18%. On a $10,000 position that is $80 vs $18 annually, a gap of $62 per year that compounds over a long holding period. On income, MEDI currently yields 0.04% against 0.41% for QQQ.
Holdings Overlap
MEDI and QQQ share 6 holdings out of 140 unique holdings combined, representing a 2.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MEDI or QQQ?
MEDI has an expense ratio of 0.80% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $62 per year of difference.
Which performed better, MEDI or QQQ?
Over the past year MEDI returned +26.14% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), MEDI annualized +16.56% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, MEDI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.2% for MEDI. Worst drawdown: MEDI -19.2% vs QQQ -83.0%.
Should I hold both MEDI and QQQ?
MEDI and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MEDI and QQQ?
MEDI and QQQ share 6 common holdings with a 2.4% weight overlap. Combined, they hold 140 unique securities.
Which pays a higher dividend, MEDI or QQQ?
MEDI yields 0.04% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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