HEQQ vs QQQ

Quick Verdict

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

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricHEQQQQQWinner
Expense Ratio0.50%0.18%
AUM$30M$455.8B
Dividend Yield0.10%0.41%
Holdings106108
YTD Return+4.98%+18.20%
1Y Return+12.56%+27.63%
3Y Return (annualized)-+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)8.6%30.6%
Max Drawdown-7.6%-83.0%
Fund FamilyJ.P. Morgan Asset ManagementInvesco (US)
CategoryEquityEquity
InceptionMar 26, 2025Mar 10, 1999

HEQQ vs QQQ Performance

JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF (HEQQ) is a ETF from J.P. Morgan Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HEQQ returned +12.56% while QQQ returned +27.63%. Year to date, HEQQ is up 4.98% versus a gain of 18.20% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 8.6% for HEQQ. 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 -7.6% for HEQQ 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

HEQQ charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, HEQQ currently yields 0.10% against 0.41% for QQQ.

Holdings Overlap

63.9%overlap

HEQQ and QQQ share 37 holdings out of 164 unique holdings combined, representing a 63.9% weight overlap.

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

Top Shared Holdings

StockWeight in HEQQWeight in QQQDifference
NVDA8.39%7.88%0.51%
AAPL8.46%7.46%1.00%
MSFT5.36%4.65%0.71%
MUProProPro
GOOGProProPro
AMZNProProPro
AMDProProPro
METAProProPro
WMTProProPro
AVGOProProPro
See all 10 holdings HEQQ 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, HEQQ or QQQ?

HEQQ has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.

Which performed better, HEQQ or QQQ?

Over the past year HEQQ returned +12.56% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), HEQQ annualized +16.51% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, HEQQ or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 8.6% for HEQQ. Worst drawdown: HEQQ -7.6% vs QQQ -83.0%.

Should I hold both HEQQ and QQQ?

HEQQ and QQQ have a monthly-return correlation of 0.91, 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 HEQQ and QQQ?

HEQQ and QQQ share 37 common holdings with a 63.9% weight overlap. Combined, they hold 164 unique securities.

Which pays a higher dividend, HEQQ or QQQ?

HEQQ yields 0.10% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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