EFAA vs QQQ
Invesco MSCI EAFE Income Advantage ETF vs Invesco QQQ Trust, Series 1
Which is better, EFAA or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. EFAA is less concentrated, with 29.9% of the fund in its ten largest positions against 46.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | EFAA | QQQ |
|---|---|---|
| Expense Ratio | 0.39% | 0.18%Best |
| AUM | $677M | $506.1B |
| Dividend Yield | 8.42% | 0.42% |
| Holdings | 708 | 321 |
| YTD Return | +6.32% | +19.30%Best |
| 1Y Return | +11.72% | +22.47%Best |
| 3Y Return (annualized) | - | +26.18% |
| 5Y Return (annualized) | - | +15.42% |
| Volatility (annualized) | 8.5%Best | 17.6% |
| Max Drawdown | -12.0%Best | -22.8% |
| $10,000 over 2.2 years | $12,955 | $15,182Best |
| Top 10 Weight | 29.9%Best | 46.7% |
| Fund Family | Invesco (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Jul 17, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 2.2 years row, are measured over the window both funds cover: Jul 17, 2024 to Oct 14, 2026 (2.2 years).
EFAA vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.2 years both funds cover.
EFAA vs QQQ Performance
Invesco MSCI EAFE Income Advantage ETF (EFAA) is an ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year EFAA returned +11.72% while QQQ returned +22.47%. Year to date, EFAA is up 6.32% versus a gain of 19.30% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.6% compared with 8.5% for EFAA. 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 -12.0% for EFAA and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.38. They move together some of the time, and apart the rest.
Fees and Cost Over Time
EFAA charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, EFAA currently yields 8.42% against 0.42% for QQQ.
Holdings Overlap
0.2% of EFAA's money is in holdings QQQ also owns. 0.4% of QQQ's money is in holdings EFAA also owns.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 657 positions we hold weights for in EFAA and 101 in QQQ, against full books of 708 and 321.
What only one of them owns
Our book lists 92 positions for QQQ that do not appear in our book for EFAA (96.0% of the fund), and 23 for EFAA that do not appear in QQQ (25.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of EFAA and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, EFAA or QQQ?
EFAA has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option, by $21 a year on a $10,000 investment.
Which performed better, EFAA or QQQ?
Over the past year EFAA returned +11.72% vs +22.47% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), EFAA annualized +12.49% vs +20.90% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, EFAA or QQQ?
QQQ has been the more volatile fund at 17.6% annualized versus 8.5% for EFAA. Worst drawdown: EFAA -12.0% vs QQQ -22.8%.
Should I hold both EFAA and QQQ?
EFAA and QQQ have a monthly-return correlation of 0.38, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, EFAA or QQQ?
EFAA yields 8.42% while QQQ yields 0.42%, so EFAA currently pays the higher dividend yield.
Is QQQ better than EFAA?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. EFAA is less concentrated, with 29.9% of the fund in its ten largest positions against 46.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.