CQQQ vs. EFA

Last updated Jun 13, 2026

CQQQ (Invesco China Technology ETF) and EFA (iShares MSCI EAFE ETF) are both exchange-traded funds - CQQQ is a China Equities fund tracking the FTSE China Incl A 25% Technology Capped Index, while EFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE Index (Net). Both are passively managed. Over the past 10 years, CQQQ returned 5.36%/yr vs 9.84%/yr for EFA. A 0.57 correlation means they provide meaningful diversification when combined. CQQQ charges 0.70%/yr vs 0.32%/yr for EFA.

Performance

CQQQ vs. EFA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco China Technology ETF (CQQQ) and iShares MSCI EAFE ETF (EFA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CQQQ achieves a -1.35% return, which is significantly lower than EFA's 9.36% return. Over the past 10 years, CQQQ has underperformed EFA with an annualized return of 5.36%, while EFA has yielded a comparatively higher 9.84% annualized return.

CQQQ

• 1D: -1.27%
• 1M: -8.85%
• YTD: -1.35%
• 6M: -0.24%
• 1Y: 21.23%
• 3Y*: 8.01%
• 5Y*: -8.12%
• 10Y*: 5.36%

EFA

• 1D: 0.28%
• 1M: 1.15%
• YTD: 9.36%
• 6M: 10.80%
• 1Y: 20.34%
• 3Y*: 16.14%
• 5Y*: 8.36%
• 10Y*: 9.84%

*Multi-year figures are annualized to reflect compound growth (CAGR)

CQQQ vs. EFA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CQQQ Invesco China Technology ETF	-1.35%	34.96%	9.84%	-16.71%	-30.09%	-24.54%	57.33%	33.57%	-34.77%	74.31%
EFA iShares MSCI EAFE ETF	9.36%	31.55%	3.49%	18.36%	-14.39%	11.45%	7.60%	22.04%	-13.82%	25.07%

Correlation

The correlation between CQQQ and EFA is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.48
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.55
Correlation (All Time) Calculated using the full available price history since Dec 8, 2009	0.57

The correlation between CQQQ and EFA has been stable across timeframes, ranging from 0.48 to 0.57 - a consistent structural relationship.

CQQQ vs. EFA - Sectors Allocation Comparison

Sectors	CQQQ	EFA
Technology	58.2%	10.4%
Communication Services	21.9%	4.5%
Consumer Cyclical	13.8%	7.6%
Industrials	1.3%	19.9%
Financial Services	0.1%	24.6%
Basic Materials	0.1%	5.9%
Consumer Defensive	-	6.7%
Energy	-	4.0%
Healthcare	-	10.6%
Real Estate	-	1.9%
Utilities	-	4.0%

Return for Risk

CQQQ vs. EFA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CQQQ

CQQQ Risk / Return Rank: 22
CQQQ Sharpe Ratio Rank: 23
CQQQ Sortino Ratio Rank: 24
CQQQ Omega Ratio Rank: 23
CQQQ Calmar Ratio Rank: 22
CQQQ Martin Ratio Rank: 20

EFA

EFA Risk / Return Rank: 42
EFA Sharpe Ratio Rank: 42
EFA Sortino Ratio Rank: 42
EFA Omega Ratio Rank: 41
EFA Calmar Ratio Rank: 40
EFA Martin Ratio Rank: 46

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

CQQQ vs. EFA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco China Technology ETF (CQQQ) and iShares MSCI EAFE ETF (EFA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	CQQQ	EFA	Difference
Sharpe ratio: Return per unit of total volatility	0.71	1.31	-0.60
Sortino ratio: Return per unit of downside risk	1.18	1.91	-0.73
Omega ratio: Gain probability vs. loss probability	1.14	1.24	-0.10
Calmar ratio: Return relative to maximum drawdown	0.87	1.79	-0.91
Martin ratio: Return relative to average drawdown	2.01	6.67	-4.66

CQQQ vs. EFA - Sharpe Ratio Comparison

The current CQQQ Sharpe Ratio is 0.71, which is lower than the EFA Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of CQQQ and EFA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

CQQQ vs. EFA - Drawdown Comparison

The maximum CQQQ drawdown since its inception was -73.99%, which is greater than EFA's maximum drawdown of -61.04%. Use the drawdown chart below to compare losses from any high point for CQQQ and EFA.

Drawdown Indicators

	CQQQ	EFA	Difference
Max Drawdown Largest peak-to-trough decline	-73.99%	-61.04%	-12.95%
Max Drawdown (1Y) Largest decline over 1 year	-24.41%	-11.42%	-12.99%
Max Drawdown (3Y) Largest decline over 3 years	-35.93%	-14.05%	-21.88%
Max Drawdown (5Y) Largest decline over 5 years	-66.96%	-29.53%	-37.43%
Max Drawdown (10Y) Largest decline over 10 years	-73.99%	-34.19%	-39.80%
Current Drawdown Current decline from peak	-51.07%	-0.61%	-50.46%
Average Drawdown Average peak-to-trough decline	-28.32%	-11.92%	-16.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.60%	3.07%	+7.53%

Volatility

CQQQ vs. EFA - Volatility Comparison

Invesco China Technology ETF (CQQQ) has a higher volatility of 10.63% compared to iShares MSCI EAFE ETF (EFA) at 5.50%. This indicates that CQQQ's price experiences larger fluctuations and is considered to be riskier than EFA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CQQQ	EFA	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.63%	5.50%	+5.13%
Volatility (6M) Calculated over the trailing 6-month period	22.55%	13.19%	+9.36%
Volatility (1Y) Calculated over the trailing 1-year period	30.20%	15.64%	+14.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	38.09%	16.58%	+21.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	33.33%	17.27%	+16.06%

CQQQ vs. EFA - Expense Ratio Comparison

CQQQ has a 0.70% expense ratio, which is higher than EFA's 0.32% expense ratio.

Dividends

CQQQ vs. EFA - Dividend Comparison

CQQQ's dividend yield for the trailing twelve months is around 2.20%, less than EFA's 3.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CQQQ Invesco China Technology ETF	2.20%	2.17%	0.28%	0.55%	0.08%	0.00%	0.47%	0.01%	0.43%	1.41%	1.69%	1.77%
EFA iShares MSCI EAFE ETF	3.09%	3.38%	3.24%	2.98%	2.69%	3.33%	2.13%	3.10%	3.39%	2.57%	3.07%	2.76%

Frequently Asked Questions

Can I hold both CQQQ and EFA in my portfolio?

CQQQ and EFA have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CQQQ or EFA?

CQQQ has higher volatility (10.63%) compared to EFA (5.50%). In terms of maximum drawdown, CQQQ dropped -73.99% vs EFA's -61.04%.

Which ETF is better, CQQQ or EFA?

On 10-year performance, EFA leads with 9.84% vs 5.36% for CQQQ. On fees, EFA is cheaper at 0.32% per year. On volatility, EFA has been the lower-risk option at 5.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CQQQ or EFA?

Over the 10-year period, EFA has performed better with a 9.84% return vs 5.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CQQQ or EFA?

EFA is cheaper with a 0.32% expense ratio, compared with 0.70% for CQQQ.

Which ETF pays a higher dividend yield, CQQQ or EFA?

EFA has the higher dividend yield at 3.09%, compared with 2.20% for CQQQ.

What is the main difference between CQQQ and EFA?

CQQQ is categorized as China Equities, while EFA is Foreign Large Cap Equities. CQQQ tracks FTSE China Incl A 25% Technology Capped Index, while EFA tracks MSCI EAFE Index (Net). They also come from different issuers: Invesco and iShares. Their fees differ too: 0.70% for CQQQ and 0.32% for EFA.

Which has better risk-adjusted returns?

EFA currently has the higher Sharpe Ratio (1.31 vs 0.71), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.