QQQ vs SCZ
Invesco QQQ Trust, Series 1 vs iShares MSCI EAFE Small-Cap ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. SCZ offers more diversification with 2,080 holdings.
Side-by-Side Comparison
| Metric | QQQ | SCZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.40% | |
| AUM | $496.3B | $13.5B | |
| Dividend Yield | 0.44% | 3.15% | |
| Holdings | 108 | 2,080 | |
| YTD Return | +16.64% | +12.27% | |
| 1Y Return | +27.27% | +19.17% | |
| 3Y Return (annualized) | +25.96% | +18.26% | |
| 5Y Return (annualized) | +14.54% | +5.81% | |
| Volatility (annualized) | 30.6% | 18.9% | |
| Max Drawdown | -83.0% | -62.6% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Dec 10, 2007 |
QQQ vs SCZ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares MSCI EAFE Small-Cap ETF (SCZ) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +27.27% while SCZ returned +19.17%. Year to date, QQQ is up 16.64% versus a gain of 12.27% for SCZ.
Over three years, QQQ compounded at +25.96% per year against +18.26% for SCZ; over five years the annualized figures are +14.54% and +5.81% respectively. Across the full 19-year window we track, QQQ has the edge at +13.03% annualized vs +3.74%. 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 18.9% for SCZ. 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 -62.6% for SCZ. 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while SCZ charges 0.40%. On a $10,000 position that is $18 vs $40 annually, a gap of $22 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.15% for SCZ.
Holdings Overlap
QQQ and SCZ share 0 holdings out of 1746 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 SCZ?
QQQ has an expense ratio of 0.18% while SCZ charges 0.40%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, QQQ or SCZ?
Over the past year QQQ returned +27.27% vs +19.17% for SCZ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), QQQ annualized +13.03% vs +3.74% for SCZ. Past performance does not guarantee future results.
Which is riskier, QQQ or SCZ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.9% for SCZ. Worst drawdown: QQQ -83.0% vs SCZ -62.6%.
Should I hold both QQQ and SCZ?
QQQ and SCZ have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SCZ?
QQQ and SCZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1746 unique securities.
Which pays a higher dividend, QQQ or SCZ?
QQQ yields 0.44% while SCZ yields 3.15%, so SCZ currently pays the higher dividend yield.
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