QQQ vs ZHDG
Invesco QQQ Trust, Series 1 vs ZEGA Buy and Hedge ETF
Which is better, QQQ or ZHDG?
Large Cap Growth against Large Cap Blend.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91.
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 | QQQ | ZHDG |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.95% |
| AUM | $506.1B | $31M |
| Dividend Yield | 0.42% | 2.42% |
| Holdings | 321 | 28 |
| YTD Return | +19.30%Best | +6.90% |
| 1Y Return | +22.47%Best | +8.99% |
| 3Y Return (annualized) | +26.18%Best | +14.14% |
| 5Y Return (annualized) | +15.42%Best | +6.03% |
| Volatility (annualized) | 20.7% | 12.3%Best |
| Max Drawdown | -35.1% | -23.3%Best |
| $10,000 over 5 years | $20,484Best | $13,401 |
| Fund Family | Invesco (US) | Zega ETFs |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Blend |
| Inception | Mar 10, 1999 | Jul 6, 2021 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 7, 2021 to Oct 14, 2026 (5.3 years).
QQQ vs ZHDG 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 5.3 years both funds cover.
QQQ vs ZHDG Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and ZEGA Buy and Hedge ETF (ZHDG) is an ETF from Zega ETFs. Over the past year QQQ returned +22.47% while ZHDG returned +8.99%. Year to date, QQQ is up 19.30% versus a gain of 6.90% for ZHDG.
Over three years, QQQ compounded at +26.18% per year against +14.14% for ZHDG; over five years the annualized figures are +15.42% and +6.03% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.7% compared with 12.3% for ZHDG. 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 -35.1% for QQQ and -23.3% for ZHDG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
QQQ charges 0.18% per year while ZHDG charges 0.95%. On a $10,000 position that is $18 vs $95 annually, a gap of $77 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 2.42% for ZHDG.
Holdings Overlap
We hold position weights for 101 holdings in QQQ and 2 in ZHDG, totalling 99.6% and 8.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 101 positions we hold weights for in QQQ and 2 in ZHDG, against full books of 321 and 28.
You are not choosing between two funds in isolation.
Whichever of QQQ and ZHDG 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, QQQ or ZHDG?
QQQ has an expense ratio of 0.18% while ZHDG charges 0.95%. QQQ is the cheaper option, by $77 a year on a $10,000 investment.
Which performed better, QQQ or ZHDG?
Over the past year QQQ returned +22.47% vs +8.99% for ZHDG, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or ZHDG?
QQQ has been the more volatile fund at 20.7% annualized versus 12.3% for ZHDG. Worst drawdown: QQQ -35.1% vs ZHDG -23.3%.
Should I hold both QQQ and ZHDG?
QQQ and ZHDG have a monthly-return correlation of 0.91, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, QQQ or ZHDG?
QQQ yields 0.42% while ZHDG yields 2.42%, so ZHDG currently pays the higher dividend yield.
Is ZHDG better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.91. Which one suits a particular account depends on what it is for. This is information, not a recommendation.