HSCZ vs QQQ
HSCZ vs QQQ
iShares Currency Hedged MSCI EAFE Small-Cap ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HSCZ offers more diversification with 1664 holdings.
Side-by-Side Comparison
| Metric | HSCZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.18% | |
| AUM | $241M | $455.8B | |
| Dividend Yield | 2.95% | 0.41% | |
| Holdings | 2,184 | 108 | |
| YTD Return | +12.32% | +18.34% | |
| 1Y Return | +23.86% | +28.94% | |
| 3Y Return (annualized) | +18.84% | +25.28% | |
| 5Y Return (annualized) | +11.08% | +15.22% | |
| Volatility (annualized) | 13.8% | 30.6% | |
| Max Drawdown | -37.1% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 29, 2015 | Mar 10, 1999 |
HSCZ vs QQQ Performance
iShares Currency Hedged MSCI EAFE Small-Cap ETF (HSCZ) 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 HSCZ returned +23.86% while QQQ returned +28.94%. Year to date, HSCZ is up 12.32% versus a gain of 18.34% for QQQ.
Over three years, HSCZ compounded at +18.84% per year against +25.28% for QQQ; over five years the annualized figures are +11.08% and +15.22% respectively. Across the full 11-year window we track, QQQ has the edge at +13.12% annualized vs +8.75%. 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 13.8% for HSCZ. 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 -37.1% for HSCZ 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HSCZ charges 0.43% per year while QQQ charges 0.18%. On a $10,000 position that is $43 vs $18 annually, a gap of $25 per year that compounds over a long holding period. On income, HSCZ currently yields 2.95% against 0.41% for QQQ.
Holdings Overlap
HSCZ and QQQ share 0 holdings out of 1767 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, HSCZ or QQQ?
HSCZ has an expense ratio of 0.43% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, HSCZ or QQQ?
Over the past year HSCZ returned +23.86% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), HSCZ annualized +8.75% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, HSCZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.8% for HSCZ. Worst drawdown: HSCZ -37.1% vs QQQ -83.0%.
Should I hold both HSCZ and QQQ?
HSCZ and QQQ have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HSCZ and QQQ?
HSCZ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1767 unique securities.
Which pays a higher dividend, HSCZ or QQQ?
HSCZ yields 2.95% while QQQ yields 0.41%, so HSCZ currently pays the higher dividend yield.
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