ESG vs QQQ
ESG vs QQQ
FlexShares STOXX US ESG Select Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. ESG offers more diversification with 249 holdings.
Side-by-Side Comparison
| Metric | ESG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.32% | 0.18% | |
| AUM | $131M | $455.8B | |
| Dividend Yield | 0.87% | 0.41% | |
| Holdings | 253 | 108 | |
| YTD Return | +14.64% | +17.27% | |
| 1Y Return | +23.96% | +28.64% | |
| 3Y Return (annualized) | +19.07% | +24.88% | |
| 5Y Return (annualized) | +12.03% | +14.86% | |
| Volatility (annualized) | 17.5% | 30.6% | |
| Max Drawdown | -32.5% | -83.0% | |
| Fund Family | Flexshares Trust | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2016 | Mar 10, 1999 |
ESG vs QQQ Performance
FlexShares STOXX US ESG Select Index Fund (ESG) is a ETF from Flexshares Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ESG returned +23.96% while QQQ returned +28.64%. Year to date, ESG is up 14.64% versus a gain of 17.27% for QQQ.
Over three years, ESG compounded at +19.07% per year against +24.88% for QQQ; over five years the annualized figures are +12.03% and +14.86% respectively. Across the full 10-year window we track, ESG has the edge at +15.04% annualized vs +13.08%. 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 17.5% for ESG. 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 -32.5% for ESG 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
ESG charges 0.32% per year while QQQ charges 0.18%. On a $10,000 position that is $32 vs $18 annually, a gap of $14 per year that compounds over a long holding period. On income, ESG currently yields 0.87% against 0.41% for QQQ.
Holdings Overlap
ESG and QQQ share 43 holdings out of 309 unique holdings combined, representing a 41.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in ESG | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 4.92% | 7.88% | 2.96% |
| AAPL | 5.08% | 7.46% | 2.38% |
| MSFT | 4.68% | 4.65% | 0.03% |
| AVGO | Pro | Pro | Pro |
| AMZN | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| INTC | Pro | Pro | Pro |
See all 10 holdings ESG shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, ESG or QQQ?
ESG has an expense ratio of 0.32% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, ESG or QQQ?
Over the past year ESG returned +23.96% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (10 years), ESG annualized +15.04% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, ESG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.5% for ESG. Worst drawdown: ESG -32.5% vs QQQ -83.0%.
Should I hold both ESG and QQQ?
ESG and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ESG and QQQ?
ESG and QQQ share 43 common holdings with a 41.1% weight overlap. Combined, they hold 309 unique securities.
Which pays a higher dividend, ESG or QQQ?
ESG yields 0.87% while QQQ yields 0.41%, so ESG currently pays the higher dividend yield.
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