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HEFA vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HEFA vs. QQQ

Last updated Jun 14, 2026

HEFA (iShares Currency Hedged MSCI EAFE ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - HEFA is a Foreign Large Cap Equities fund tracking the MSCI EAFE 100% Hedged to USD Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, HEFA returned 13.27%/yr vs 21.79%/yr for QQQ. A 0.68 correlation means they provide meaningful diversification when combined. HEFA charges 0.35%/yr vs 0.18%/yr for QQQ.

Performance

HEFA vs. QQQ - Performance Comparison

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

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Returns By Period

In the year-to-date period, HEFA achieves a 11.36% return, which is significantly lower than QQQ's 17.57% return. Over the past 10 years, HEFA has underperformed QQQ with an annualized return of 13.27%, while QQQ has yielded a comparatively higher 21.79% annualized return.

HEFA

1D
0.33%
1M
3.88%
YTD
11.36%
6M
12.73%
1Y
28.01%
3Y*
18.32%
5Y*
13.57%
10Y*
13.27%

QQQ

1D
0.59%
1M
1.75%
YTD
17.57%
6M
17.85%
1Y
37.55%
3Y*
26.43%
5Y*
16.85%
10Y*
21.79%
*Multi-year figures are annualized to reflect compound growth (CAGR)

HEFA vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
HEFA
iShares Currency Hedged MSCI EAFE ETF		11.36%24.58%13.71%20.33%-4.86%19.59%2.09%27.63%-9.33%16.67%
QQQ
Invesco QQQ ETF		17.57%20.77%25.58%54.86%-32.58%27.42%48.62%38.96%-0.13%32.66%

Correlation

The correlation between HEFA and QQQ is 0.67, 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

0.67

Correlation (3Y)
Calculated over the trailing 3-year period

0.65

Correlation (5Y)
Calculated over the trailing 5-year period

0.69

Correlation (10Y)
Calculated over the trailing 10-year period

0.69

Correlation (All Time)
Calculated using the full available price history since Feb 14, 2014

0.68

The correlation between HEFA and QQQ has been stable across timeframes, ranging from 0.65 to 0.69 - a consistent structural relationship.

HEFA vs. QQQ - Sectors Allocation Comparison

Sectors
HEFA
QQQ

Financial Services

24.9%
0.2%

Industrials

18.4%
2.6%

Technology

12.7%
58.7%

Healthcare

10.2%
3.7%

Consumer Cyclical

6.8%
11.4%

Consumer Defensive

6.4%
6.4%

Basic Materials

6.2%
1.0%

Communication Services

4.5%
14.3%

Energy

3.9%
0.5%

Utilities

3.4%
1.2%

Real Estate

1.2%
0.1%

Financial Services

HEFA
24.9%
QQQ
0.2%

Industrials

HEFA
18.4%
QQQ
2.6%

Technology

HEFA
12.7%
QQQ
58.7%

Healthcare

HEFA
10.2%
QQQ
3.7%

Consumer Cyclical

HEFA
6.8%
QQQ
11.4%

Consumer Defensive

HEFA
6.4%
QQQ
6.4%

Basic Materials

HEFA
6.2%
QQQ
1.0%

Communication Services

HEFA
4.5%
QQQ
14.3%

Energy

HEFA
3.9%
QQQ
0.5%

Utilities

HEFA
3.4%
QQQ
1.2%

Real Estate

HEFA
1.2%
QQQ
0.1%

Compare stocks, funds, or ETFs

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iShares Currency Hedged MSCI EAFE ETF

Invesco QQQ ETF

Often compared with HEFA:
HEFA vs. DBEFHEFA vs. HAWXHEFA vs. FNDFHEFA vs. IDMOHEFA vs. HSCZHEFA vs. HEWJHEFA vs. HEZU
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. QQQI

Return for Risk

HEFA vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
HEFA
HEFA Risk / Return Rank: 7272
Overall Rank
HEFA Sharpe Ratio Rank: 7474
Sharpe Ratio Rank
HEFA Sortino Ratio Rank: 7474
Sortino Ratio Rank
HEFA Omega Ratio Rank: 7575
Omega Ratio Rank
HEFA Calmar Ratio Rank: 6464
Calmar Ratio Rank
HEFA Martin Ratio Rank: 7373
Martin Ratio Rank
QQQ
QQQ Risk / Return Rank: 7171
Overall Rank
QQQ Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
QQQ Sortino Ratio Rank: 7070
Sortino Ratio Rank
QQQ Omega Ratio Rank: 7373
Omega Ratio Rank
QQQ Calmar Ratio Rank: 6969
Calmar Ratio Rank
QQQ Martin Ratio Rank: 7070
Martin Ratio Rank
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.

HEFA vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI EAFE ETF (HEFA) and Invesco QQQ ETF (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.

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.

HEFAQQQDifference
Sharpe ratioReturn per unit of total volatility
2.05
2.09

-0.05

Sortino ratioReturn per unit of downside risk
2.87
2.73

+0.14

Omega ratioGain probability vs. loss probability

1.38

1.37

+0.01

Calmar ratioReturn relative to maximum drawdown

2.81

3.01

-0.19

Martin ratioReturn relative to average drawdown

11.78

11.22

+0.55

HEFA vs. QQQ - Sharpe Ratio Comparison

The current HEFA Sharpe Ratio is 2.05, which is comparable to the QQQ Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of HEFA and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

HEFA vs. QQQ - Drawdown Comparison

The maximum HEFA drawdown since its inception was -32.39%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for HEFA and QQQ.

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Drawdown Indicators

HEFAQQQDifference

Max Drawdown

Largest peak-to-trough decline

-32.39%

-82.97%

+50.58%

Max Drawdown (1Y)

Largest decline over 1 year

-9.52%

-11.96%

+2.44%

Max Drawdown (3Y)

Largest decline over 3 years

-14.28%

-22.77%

+8.49%

Max Drawdown (5Y)

Largest decline over 5 years

-14.79%

-35.12%

+20.33%

Max Drawdown (10Y)

Largest decline over 10 years

-32.39%

-35.12%

+2.73%

Current Drawdown

Current decline from peak

0.00%

-3.33%

+3.33%

Average Drawdown

Average peak-to-trough decline

-4.16%

-32.75%

+28.59%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.28%

3.20%

-0.92%

Volatility

HEFA vs. QQQ - Volatility Comparison

The current volatility for iShares Currency Hedged MSCI EAFE ETF (HEFA) is 4.55%, while Invesco QQQ ETF (QQQ) has a volatility of 7.56%. This indicates that HEFA 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.

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Volatility by Period

HEFAQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.55%

7.56%

-3.01%

Volatility (6M)

Calculated over the trailing 6-month period

10.68%

13.81%

-3.13%

Volatility (1Y)

Calculated over the trailing 1-year period

13.08%

17.19%

-4.11%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

13.85%

22.55%

-8.70%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

15.86%

22.38%

-6.52%

HEFA vs. QQQ - Expense Ratio Comparison

HEFA has a 0.35% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

HEFA vs. QQQ - Dividend Comparison

HEFA's dividend yield for the trailing twelve months is around 3.95%, more than QQQ's 0.39% yield.

PositionTTM20252024202320222021202020192018201720162015
HEFA
iShares Currency Hedged MSCI EAFE ETF		3.95%4.40%3.09%3.02%25.14%3.06%2.10%7.56%4.58%2.55%3.17%3.54%
QQQ
Invesco QQQ ETF		0.39%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%

Frequently Asked Questions

HEFA and QQQ have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

QQQ has higher volatility (7.56%) compared to HEFA (4.55%). In terms of maximum drawdown, HEFA dropped -32.39% vs QQQ's -82.97%.

On 10-year performance, QQQ leads with 21.79% vs 13.27% for HEFA. On fees, QQQ is cheaper at 0.18% per year. On volatility, HEFA has been the lower-risk option at 4.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QQQ has performed better with a 21.79% return vs 13.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QQQ is cheaper with a 0.18% expense ratio, compared with 0.35% for HEFA.

HEFA has the higher dividend yield at 3.95%, compared with 0.39% for QQQ.

HEFA is categorized as Foreign Large Cap Equities, while QQQ is Nasdaq-100. HEFA tracks MSCI EAFE 100% Hedged to USD Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.35% for HEFA and 0.18% for QQQ.

QQQ currently has the higher Sharpe Ratio (2.09 vs 2.05), 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.

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