EAGG vs QQQ
EAGG vs QQQ
iShares ESG Aware US Aggregate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
EAGG has a lower expense ratio. QQQ delivered stronger 1-year returns. EAGG offers more diversification with 4651 holdings.
Side-by-Side Comparison
| Metric | EAGG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.18% | |
| AUM | $5.0B | $455.8B | |
| Dividend Yield | 3.99% | 0.41% | |
| Holdings | 5,131 | 108 | |
| YTD Return | -0.28% | +18.34% | |
| 1Y Return | +1.99% | +28.94% | |
| 3Y Return (annualized) | +3.90% | +25.28% | |
| 5Y Return (annualized) | -0.56% | +15.22% | |
| Volatility (annualized) | 5.6% | 30.6% | |
| Max Drawdown | -19.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 18, 2018 | Mar 10, 1999 |
EAGG vs QQQ Performance
iShares ESG Aware US Aggregate Bond ETF (EAGG) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EAGG returned +1.99% while QQQ returned +28.94%. Year to date, EAGG is down 0.28% versus a gain of 18.34% for QQQ.
Over three years, EAGG compounded at +3.90% per year against +25.28% for QQQ; over five years the annualized figures are -0.56% and +15.22% respectively. Across the full 8-year window we track, QQQ has the edge at +13.12% annualized vs +1.15%. 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 5.6% for EAGG. 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 -19.4% for EAGG 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EAGG charges 0.10% per year while QQQ charges 0.18%. On a $10,000 position that is $10 vs $18 annually, a gap of $8 per year that compounds over a long holding period. On income, EAGG currently yields 3.99% against 0.41% for QQQ.
Holdings Overlap
EAGG and QQQ share 1 holdings out of 4753 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in EAGG | Weight in QQQ | Difference |
|---|---|---|---|
| LRCX | 0.00% | 1.82% | 1.82% |
Frequently Asked Questions
Which is cheaper, EAGG or QQQ?
EAGG has an expense ratio of 0.10% while QQQ charges 0.18%. EAGG is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, EAGG or QQQ?
Over the past year EAGG returned +1.99% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), EAGG annualized +1.15% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, EAGG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.6% for EAGG. Worst drawdown: EAGG -19.4% vs QQQ -83.0%.
Should I hold both EAGG and QQQ?
EAGG and QQQ have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EAGG and QQQ?
EAGG and QQQ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 4753 unique securities.
Which pays a higher dividend, EAGG or QQQ?
EAGG yields 3.99% while QQQ yields 0.41%, so EAGG currently pays the higher dividend yield.
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