NRES vs QQQ

NRES vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. NRES delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: NRESMore Diversified: QQQ

Side-by-Side Comparison

MetricNRESQQQWinner
Expense Ratio0.45%0.18%
AUM$36M$496.3B
Dividend Yield2.48%0.44%
Holdings58108
YTD Return+23.58%+16.64%
1Y Return+43.50%+27.27%
3Y Return (annualized)-+25.96%
5Y Return (annualized)-+14.54%
Volatility (annualized)17.1%30.6%
Max Drawdown-21.5%-83.0%
Fund FamilyXtrackers ETFsInvesco (US)
CategoryEquityEquity
InceptionFeb 27, 2024Mar 10, 1999

NRES vs QQQ Performance

Xtrackers RREEF Global Natural Resources ETF (NRES) is a ETF from Xtrackers ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NRES returned +43.50% while QQQ returned +27.27%. Year to date, NRES is up 23.58% versus a gain of 16.64% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 17.1% for NRES. 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 -21.5% for NRES 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 -0.11. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NRES charges 0.45% per year while QQQ charges 0.18%. On a $10,000 position that is $45 vs $18 annually, a gap of $27 per year that compounds over a long holding period. On income, NRES currently yields 2.48% against 0.44% for QQQ.

Holdings Overlap

0.5%overlap

NRES and QQQ share 2 holdings out of 156 unique holdings combined, representing a 0.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in NRESWeight in QQQDifference
FANG1.34%0.23%1.11%
BKR0.59%0.27%0.32%

Frequently Asked Questions

Which is cheaper, NRES or QQQ?

NRES has an expense ratio of 0.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $27 per year of difference.

Which performed better, NRES or QQQ?

Over the past year NRES returned +43.50% vs +27.27% for QQQ, so NRES leads on 1-year performance. Over the longest common window we track (3 years), NRES annualized +19.91% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, NRES or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 17.1% for NRES. Worst drawdown: NRES -21.5% vs QQQ -83.0%.

Should I hold both NRES and QQQ?

NRES and QQQ have a monthly-return correlation of -0.11, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NRES and QQQ?

NRES and QQQ share 2 common holdings with a 0.5% weight overlap. Combined, they hold 156 unique securities.

Which pays a higher dividend, NRES or QQQ?

NRES yields 2.48% while QQQ yields 0.44%, so NRES currently pays the higher dividend yield.

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