EDV vs QQQ

Quick Verdict

EDV has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: EDVHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricEDVQQQWinner
Expense Ratio0.05%0.18%
AUM$3.5B$455.8B
Dividend Yield4.83%0.41%
Holdings83108
YTD Return-5.51%+14.45%
1Y Return-5.92%+24.70%
3Y Return (annualized)-5.06%+24.19%
5Y Return (annualized)-13.02%+14.49%
Volatility (annualized)21.8%30.6%
Max Drawdown-62.0%-83.0%
Fund FamilyVanguard (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionDec 6, 2007Mar 10, 1999

EDV vs QQQ Performance

Vanguard Extended Duration Treasury ETF (EDV) is a ETF from Vanguard (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EDV returned -5.92% while QQQ returned +24.70%. Year to date, EDV is down 5.51% versus a gain of 14.45% for QQQ.

Over three years, EDV compounded at -5.06% per year against +24.19% for QQQ; over five years the annualized figures are -13.02% and +14.49% respectively. Across the full 19-year window we track, QQQ has the edge at +12.98% annualized vs -1.47%. 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 21.8% for EDV. 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 -62.0% for EDV 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 -0.07. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EDV charges 0.05% per year while QQQ charges 0.18%. On a $10,000 position that is $5 vs $18 annually, a gap of $13 per year that compounds over a long holding period. On income, EDV currently yields 4.83% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

EDV and QQQ share 0 holdings out of 179 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, EDV or QQQ?

EDV has an expense ratio of 0.05% while QQQ charges 0.18%. EDV is the cheaper option. On a $10,000 investment, that is $13 per year of difference.

Which performed better, EDV or QQQ?

Over the past year EDV returned -5.92% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), EDV annualized -1.47% vs +12.98% for QQQ. Past performance does not guarantee future results.

Which is riskier, EDV or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 21.8% for EDV. Worst drawdown: EDV -62.0% vs QQQ -83.0%.

Should I hold both EDV and QQQ?

EDV and QQQ have a monthly-return correlation of -0.07, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EDV and QQQ?

EDV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 179 unique securities.

Which pays a higher dividend, EDV or QQQ?

EDV yields 4.83% while QQQ yields 0.41%, so EDV currently pays the higher dividend yield.

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