ESGV vs QQQ

Quick Verdict

ESGV has a lower expense ratio. QQQ delivered stronger 1-year returns. ESGV offers more diversification with 1224 holdings.

Lower Fees: ESGVHigher Returns: QQQMore Diversified: ESGV

Side-by-Side Comparison

MetricESGVQQQWinner
Expense Ratio0.09%0.18%
AUM$13.2B$455.8B
Dividend Yield1.09%0.41%
Holdings1,264108
YTD Return+12.57%+17.27%
1Y Return+22.80%+28.64%
3Y Return (annualized)+20.65%+24.88%
5Y Return (annualized)+11.65%+14.86%
Volatility (annualized)17.9%30.6%
Max Drawdown-33.7%-83.0%
Fund FamilyVanguard (US)Invesco (US)
CategoryEquityEquity
InceptionSep 18, 2018Mar 10, 1999

ESGV vs QQQ Performance

Vanguard ESG US Stock ETF (ESGV) is a ETF from Vanguard (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ESGV returned +22.80% while QQQ returned +28.64%. Year to date, ESGV is up 12.57% versus a gain of 17.27% for QQQ.

Over three years, ESGV compounded at +20.65% per year against +24.88% for QQQ; over five years the annualized figures are +11.65% and +14.86% respectively. Across the full 8-year window we track, ESGV has the edge at +14.66% 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 17.9% for ESGV. 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 -33.7% for ESGV 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

ESGV charges 0.09% per year while QQQ charges 0.18%. On a $10,000 position that is $9 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, ESGV currently yields 1.09% against 0.41% for QQQ.

Holdings Overlap

52.2%overlap

ESGV and QQQ share 80 holdings out of 1247 unique holdings combined, representing a 52.2% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in ESGVWeight in QQQDifference
NVDA8.49%7.88%0.61%
AAPL8.08%7.46%0.62%
MSFT4.98%4.65%0.33%
AMZNProProPro
MUProProPro
GOOGProProPro
AVGOProProPro
METAProProPro
AMDProProPro
TSLAProProPro
See all 10 holdings ESGV shares with QQQ
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, ESGV or QQQ?

ESGV has an expense ratio of 0.09% while QQQ charges 0.18%. ESGV is the cheaper option. On a $10,000 investment, that is $9 per year of difference.

Which performed better, ESGV or QQQ?

Over the past year ESGV returned +22.80% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), ESGV annualized +14.66% vs +13.08% for QQQ. Past performance does not guarantee future results.

Which is riskier, ESGV or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 17.9% for ESGV. Worst drawdown: ESGV -33.7% vs QQQ -83.0%.

Should I hold both ESGV and QQQ?

ESGV and QQQ have a monthly-return correlation of 0.95, 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 ESGV and QQQ?

ESGV and QQQ share 80 common holdings with a 52.2% weight overlap. Combined, they hold 1247 unique securities.

Which pays a higher dividend, ESGV or QQQ?

ESGV yields 1.09% while QQQ yields 0.41%, so ESGV currently pays the higher dividend yield.

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