HEDJ vs. QQQ
Compare and contrast key facts about WisdomTree Europe Hedged Equity Fund (HEDJ) and Invesco QQQ (QQQ).
HEDJ and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. HEDJ is a passively managed fund by WisdomTree that tracks the performance of the WisdomTree Europe Hedged Equity Index. It was launched on Dec 31, 2009. QQQ is a passively managed fund by Invesco that tracks the performance of the NASDAQ-100 Index. It was launched on Mar 10, 1999. Both HEDJ and QQQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: HEDJ or QQQ.
Key characteristics
| HEDJ | QQQ | |
|---|---|---|
| YTD Return | 2.06% | 9.88% |
| 1Y Return | 10.51% | 21.43% |
| 3Y Return (Ann) | 5.52% | 6.20% |
| 5Y Return (Ann) | 8.20% | 19.38% |
| 10Y Return (Ann) | 7.75% | 17.28% |
| Sharpe Ratio | 0.79 | 1.16 |
| Daily Std Dev | 12.86% | 17.67% |
| Max Drawdown | -38.18% | -82.98% |
| Current Drawdown | -9.81% | -10.79% |
Correlation
The correlation between HEDJ and QQQ is 0.66, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
HEDJ vs. QQQ - Performance Comparison
In the year-to-date period, HEDJ achieves a 2.06% return, which is significantly lower than QQQ's 9.88% return. Over the past 10 years, HEDJ has underperformed QQQ with an annualized return of 7.75%, while QQQ has yielded a comparatively higher 17.28% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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HEDJ vs. QQQ - Expense Ratio Comparison
HEDJ has a 0.58% expense ratio, which is higher than QQQ's 0.20% expense ratio.
Risk-Adjusted Performance
HEDJ vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for WisdomTree Europe Hedged Equity Fund (HEDJ) and Invesco QQQ (QQQ). 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.
Dividends
HEDJ vs. QQQ - Dividend Comparison
HEDJ's dividend yield for the trailing twelve months is around 3.15%, more than QQQ's 0.64% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HEDJ WisdomTree Europe Hedged Equity Fund | 3.15% | 3.31% | 2.83% | 2.08% | 2.65% | 1.82% | 2.73% | 2.27% | 2.97% | 9.44% | 5.83% | 1.85% |
QQQ Invesco QQQ | 0.64% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
HEDJ vs. QQQ - Drawdown Comparison
The maximum HEDJ drawdown since its inception was -38.18%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for HEDJ and QQQ. For additional features, visit the drawdowns tool.
Volatility
HEDJ vs. QQQ - Volatility Comparison
The current volatility for WisdomTree Europe Hedged Equity Fund (HEDJ) is 4.60%, while Invesco QQQ (QQQ) has a volatility of 7.07%. This indicates that HEDJ experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.