QQQ vs ZHDG
Invesco QQQ Trust, Series 1 vs ZEGA Buy and Hedge ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | ZHDG | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.97% | |
| AUM | $496.3B | $37M | |
| Dividend Yield | 0.44% | 2.47% | |
| Holdings | 108 | 11 | |
| YTD Return | +16.64% | +6.54% | |
| 1Y Return | +27.27% | +12.85% | |
| 3Y Return (annualized) | +25.96% | +13.75% | |
| 5Y Return (annualized) | +14.54% | +5.69% | |
| Volatility (annualized) | 30.6% | 12.5% | |
| Max Drawdown | -83.0% | -23.3% | |
| Fund Family | Invesco (US) | Zega ETFs | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 6, 2021 |
QQQ vs ZHDG Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ZEGA Buy and Hedge ETF (ZHDG) is a ETF from Zega ETFs. Over the past year QQQ returned +27.27% while ZHDG returned +12.85%. Year to date, QQQ is up 16.64% versus a gain of 6.54% for ZHDG.
Over three years, QQQ compounded at +25.96% per year against +13.75% for ZHDG; over five years the annualized figures are +14.54% and +5.69% respectively. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs +5.87%. 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 12.5% for ZHDG. 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 -23.3% for ZHDG. 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
QQQ charges 0.18% per year while ZHDG charges 0.97%. On a $10,000 position that is $18 vs $97 annually, a gap of $79 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.47% for ZHDG.
Holdings Overlap
QQQ and ZHDG share 0 holdings out of 105 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 ZHDG?
QQQ has an expense ratio of 0.18% while ZHDG charges 0.97%. QQQ is the cheaper option. On a $10,000 investment, that is $79 per year of difference.
Which performed better, QQQ or ZHDG?
Over the past year QQQ returned +27.27% vs +12.85% for ZHDG, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.03% vs +5.87% for ZHDG. Past performance does not guarantee future results.
Which is riskier, QQQ or ZHDG?
QQQ has been the more volatile fund at 30.6% annualized versus 12.5% for ZHDG. Worst drawdown: QQQ -83.0% vs ZHDG -23.3%.
Should I hold both QQQ and ZHDG?
QQQ and ZHDG have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between QQQ and ZHDG?
QQQ and ZHDG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, QQQ or ZHDG?
QQQ yields 0.44% while ZHDG yields 2.47%, so ZHDG currently pays the higher dividend yield.
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