EFG vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. EFG offers more diversification with 357 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: EFG

Side-by-Side Comparison

MetricEFGQQQWinner
Expense Ratio0.34%0.18%
AUM$16.3B$455.8B
Dividend Yield2.24%0.41%
Holdings380108
YTD Return+8.20%+18.34%
1Y Return+16.62%+28.94%
3Y Return (annualized)+11.59%+25.28%
5Y Return (annualized)+4.04%+15.22%
Volatility (annualized)16.9%30.6%
Max Drawdown-58.9%-83.0%
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryEquityEquity
InceptionAug 1, 2005Mar 10, 1999

EFG vs QQQ Performance

iShares MSCI EAFE Growth ETF (EFG) 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 EFG returned +16.62% while QQQ returned +28.94%. Year to date, EFG is up 8.20% versus a gain of 18.34% for QQQ.

Over three years, EFG compounded at +11.59% per year against +25.28% for QQQ; over five years the annualized figures are +4.04% and +15.22% respectively. Across the full 21-year window we track, QQQ has the edge at +13.12% annualized vs +6.23%. 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 16.9% for EFG. 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 -58.9% for EFG 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 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

EFG charges 0.34% per year while QQQ charges 0.18%. On a $10,000 position that is $34 vs $18 annually, a gap of $16 per year that compounds over a long holding period. On income, EFG currently yields 2.24% against 0.41% for QQQ.

Holdings Overlap

0.4%overlap

EFG and QQQ share 2 holdings out of 458 unique holdings combined, representing a 0.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in EFGWeight in QQQDifference
FER:AS0.29%0.20%0.09%
CCEP:LN0.19%0.21%0.02%

Frequently Asked Questions

Which is cheaper, EFG or QQQ?

EFG has an expense ratio of 0.34% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $16 per year of difference.

Which performed better, EFG or QQQ?

Over the past year EFG returned +16.62% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), EFG annualized +6.23% vs +13.12% for QQQ. Past performance does not guarantee future results.

Which is riskier, EFG or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 16.9% for EFG. Worst drawdown: EFG -58.9% vs QQQ -83.0%.

Should I hold both EFG and QQQ?

EFG and QQQ have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EFG and QQQ?

EFG and QQQ share 2 common holdings with a 0.4% weight overlap. Combined, they hold 458 unique securities.

Which pays a higher dividend, EFG or QQQ?

EFG yields 2.24% while QQQ yields 0.41%, so EFG currently pays the higher dividend yield.

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