QQQ vs REZ
Invesco QQQ Trust, Series 1 vs iShares Residential and Multisector Real Estate ETF
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 | QQQ | REZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.48% | |
| AUM | $455.8B | $909M | |
| Dividend Yield | 0.41% | 1.99% | |
| Holdings | 108 | 42 | |
| YTD Return | +17.46% | +13.15% | |
| 1Y Return | +26.02% | +16.91% | |
| 3Y Return (annualized) | +25.51% | +12.10% | |
| 5Y Return (annualized) | +15.12% | +3.75% | |
| Volatility (annualized) | 30.6% | 20.8% | |
| Max Drawdown | -83.0% | -70.3% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | May 1, 2007 |
QQQ vs REZ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares Residential and Multisector Real Estate ETF (REZ) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +26.02% while REZ returned +16.91%. Year to date, QQQ is up 17.46% versus a gain of 13.15% for REZ.
Over three years, QQQ compounded at +25.51% per year against +12.10% for REZ; over five years the annualized figures are +15.12% and +3.75% respectively. Across the full 19-year window we track, QQQ has the edge at +13.08% annualized vs +4.14%. 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 20.8% for REZ. 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 -70.3% for REZ. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while REZ charges 0.48%. On a $10,000 position that is $18 vs $48 annually, a gap of $30 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 1.99% for REZ.
Holdings Overlap
QQQ and REZ share 0 holdings out of 142 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 REZ?
QQQ has an expense ratio of 0.18% while REZ charges 0.48%. QQQ is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, QQQ or REZ?
Over the past year QQQ returned +26.02% vs +16.91% for REZ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), QQQ annualized +13.08% vs +4.14% for REZ. Past performance does not guarantee future results.
Which is riskier, QQQ or REZ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.8% for REZ. Worst drawdown: QQQ -83.0% vs REZ -70.3%.
Should I hold both QQQ and REZ?
QQQ and REZ have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and REZ?
QQQ and REZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 142 unique securities.
Which pays a higher dividend, QQQ or REZ?
QQQ yields 0.41% while REZ yields 1.99%, so REZ currently pays the higher dividend yield.
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