NZAC vs QQQ
State Street SPDR MSCI ACWI Climate Paris Aligned ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
NZAC has a lower expense ratio. QQQ delivered stronger 1-year returns. NZAC offers more diversification with 715 holdings.
Side-by-Side Comparison
| Metric | NZAC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.18% | |
| AUM | $199M | $496.3B | |
| Dividend Yield | 2.07% | 0.44% | |
| Holdings | 715 | 108 | |
| YTD Return | +10.33% | +16.64% | |
| 1Y Return | +19.04% | +27.27% | |
| 3Y Return (annualized) | +19.56% | +25.96% | |
| 5Y Return (annualized) | +9.75% | +14.54% | |
| Volatility (annualized) | 14.8% | 30.6% | |
| Max Drawdown | -33.7% | -83.0% | |
| Fund Family | SPDR State Street Global Advisors | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 25, 2014 | Mar 10, 1999 |
NZAC vs QQQ Performance
State Street SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC) is a ETF from SPDR State Street Global Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NZAC returned +19.04% while QQQ returned +27.27%. Year to date, NZAC is up 10.33% versus a gain of 16.64% for QQQ.
Over three years, NZAC compounded at +19.56% per year against +25.96% for QQQ; over five years the annualized figures are +9.75% and +14.54% respectively. Across the full 12-year window we track, QQQ has the edge at +13.03% annualized vs +9.03%. 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 14.8% for NZAC. 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 -33.7% for NZAC 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NZAC charges 0.12% per year while QQQ charges 0.18%. On a $10,000 position that is $12 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, NZAC currently yields 2.07% against 0.44% for QQQ.
Holdings Overlap
NZAC and QQQ share 69 holdings out of 658 unique holdings combined, representing a 37.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NZAC or QQQ?
NZAC has an expense ratio of 0.12% while QQQ charges 0.18%. NZAC is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, NZAC or QQQ?
Over the past year NZAC returned +19.04% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), NZAC annualized +9.03% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, NZAC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.8% for NZAC. Worst drawdown: NZAC -33.7% vs QQQ -83.0%.
Should I hold both NZAC and QQQ?
NZAC and QQQ have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NZAC and QQQ?
NZAC and QQQ share 69 common holdings with a 37.1% weight overlap. Combined, they hold 658 unique securities.
Which pays a higher dividend, NZAC or QQQ?
NZAC yields 2.07% while QQQ yields 0.44%, so NZAC currently pays the higher dividend yield.
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