HEQ vs QQQ
John Hancock Hedged Equity & Income Fund vs Invesco QQQ Trust, Series 1
Which is better, HEQ or QQQ?
Large Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.7% of the fund in its ten largest positions against 48.2%.
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 | HEQ | QQQ |
|---|---|---|
| Expense Ratio | 1.16% | 0.18%Best |
| AUM | $148M | $506.1B |
| Dividend Yield | 8.10% | 0.42% |
| Holdings | 659 | 321 |
| YTD Return | +12.40% | +19.14%Best |
| 1Y Return | +15.86% | +21.45%Best |
| 3Y Return (annualized) | +16.19% | +26.10%Best |
| 5Y Return (annualized) | +7.11% | +15.25%Best |
| Volatility (annualized) | 15.3%Best | 17.5% |
| Max Drawdown | -59.7% | -35.1%Best |
| $10,000 over 5 years | $14,098 | $20,333Best |
| Top 10 Weight | 48.2% | 46.7%Best |
| Fund Family | John Hancock Investment Management | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | May 26, 2011 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: May 26, 2011 to Oct 15, 2026 (15.4 years).
HEQ 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
HEQ vs QQQ Performance
John Hancock Hedged Equity & Income Fund (HEQ) is an ETF from John Hancock Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year HEQ returned +15.86% while QQQ returned +21.45%. Year to date, HEQ is up 12.40% versus a gain of 19.14% for QQQ.
Over three years, HEQ compounded at +16.19% per year against +26.10% for QQQ; over five years the annualized figures are +7.11% and +15.25% respectively. Across the full 15-year window we track, QQQ has the edge at +18.24% annualized vs -0.19%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 15.3% for HEQ. 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 -59.7% for HEQ and -35.1% 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 0.61. They move together some of the time, and apart the rest.
Fees and Cost Over Time
HEQ charges 1.16% per year while QQQ charges 0.18%. On a $10,000 position that is $116 vs $18 annually, a gap of $98 per year that compounds over a long holding period. On income, HEQ currently yields 8.10% against 0.42% for QQQ.
Holdings Overlap
49.1% of HEQ's money is in holdings QQQ also owns. 41.8% of QQQ's money is in holdings HEQ also owns.
The two portfolios partly overlap.
14 positions in common, counted across the 54 positions we hold weights for in HEQ and 101 in QQQ, against full books of 659 and 321.
What only one of them owns
Our book lists 80 positions for QQQ that do not appear in our book for HEQ (55.4% of the fund), and 28 for HEQ that do not appear in QQQ (40.7%).
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.
Top Shared Holdings
| Stock | Weight in HEQ | Weight in QQQ | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 8.61% | 5.76% | 2.85% |
| NVDANvidia Corp | 5.10% | 8.33% | 3.23% |
| AMZNAmazon.Com Inc | 6.28% | 4.07% | 2.21% |
| GOOGLAlphabet Inc | 6.84% | 3.05% | 3.79% |
| AMDAdvanced Micro Devices Inc | 3.39% | 4.17% | 0.78% |
| MUMicron Technology, Inc. | 2.15% | 5.02% | 2.87% |
| AVGOBroadcom Inc | 4.36% | 2.53% | 1.83% |
| COSTCostco Wholesale Corp. | 3.36% | 1.69% | 1.67% |
| WMTWalmart, Inc. | 2.47% | 2.11% | 0.36% |
| PANWPalo Alto Networks, Inc | 2.16% | 1.35% | 0.81% |
49.1% of HEQ is already inside QQQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HEQ or QQQ?
HEQ has an expense ratio of 1.16% while QQQ charges 0.18%. QQQ is the cheaper option, by $98 a year on a $10,000 investment.
Which performed better, HEQ or QQQ?
Over the past year HEQ returned +15.86% vs +21.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), HEQ annualized -0.19% vs +18.24% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HEQ or QQQ?
QQQ has been the more volatile fund at 17.5% annualized versus 15.3% for HEQ. Worst drawdown: HEQ -59.7% vs QQQ -35.1%.
Should I hold both HEQ and QQQ?
HEQ and QQQ have a monthly-return correlation of 0.61, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between HEQ and QQQ?
49.1% of HEQ's money is in holdings QQQ also owns. 41.8% of QQQ's is in holdings HEQ also owns. They hold 14 positions in common, counted across the 54 positions we hold weights for in HEQ and 101 in QQQ.
Which pays a higher dividend, HEQ or QQQ?
HEQ yields 8.10% while QQQ yields 0.42%, so HEQ currently pays the higher dividend yield.
Is QQQ better than HEQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.7% of the fund in its ten largest positions against 48.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.