QQQ vs REET

Quick Verdict

REET has a lower expense ratio. QQQ delivered stronger 1-year returns. REET offers more diversification with 322 holdings.

Lower Fees: REETHigher Returns: QQQMore Diversified: REET

Side-by-Side Comparison

MetricQQQREETWinner
Expense Ratio0.18%0.14%
AUM$455.8B$5.2B
Dividend Yield0.41%3.36%
Holdings108352
YTD Return+17.46%+11.96%
1Y Return+26.02%+16.64%
3Y Return (annualized)+25.51%+10.41%
5Y Return (annualized)+15.12%+2.44%
Volatility (annualized)30.6%16.9%
Max Drawdown-83.0%-44.6%
Fund FamilyInvesco (US)iShares by BlackRock (US)
CategoryEquityEquity
InceptionMar 10, 1999Jul 8, 2014

QQQ vs REET Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares Global REIT ETF (REET) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +26.02% while REET returned +16.64%. Year to date, QQQ is up 17.46% versus a gain of 11.96% for REET.

Over three years, QQQ compounded at +25.51% per year against +10.41% for REET; over five years the annualized figures are +15.12% and +2.44% respectively. Across the full 12-year window we track, QQQ has the edge at +13.08% annualized vs +2.27%. 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 16.9% for REET. 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 -83.0% for QQQ and -44.6% for REET. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while REET charges 0.14%. On a $10,000 position that is $18 vs $14 annually, a gap of $4 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 3.36% for REET.

Holdings Overlap

0.0%overlap

QQQ and REET share 0 holdings out of 425 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, QQQ or REET?

QQQ has an expense ratio of 0.18% while REET charges 0.14%. REET is the cheaper option. On a $10,000 investment, that is $4 per year of difference.

Which performed better, QQQ or REET?

Over the past year QQQ returned +26.02% vs +16.64% for REET, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), QQQ annualized +13.08% vs +2.27% for REET. Past performance does not guarantee future results.

Which is riskier, QQQ or REET?

QQQ has been the more volatile fund at 30.6% annualized versus 16.9% for REET. Worst drawdown: QQQ -83.0% vs REET -44.6%.

Should I hold both QQQ and REET?

QQQ and REET have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and REET?

QQQ and REET share 0 common holdings with a 0.0% weight overlap. Combined, they hold 425 unique securities.

Which pays a higher dividend, QQQ or REET?

QQQ yields 0.41% while REET yields 3.36%, so REET currently pays the higher dividend yield.

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