HEQT vs. QQQ

Last updated Jun 25, 2026

HEQT (Simplify Hedged Equity ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - HEQT is a Equity Hedged fund actively managed by Simplify, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. HEQT is actively managed, while QQQ is passively managed. Over the past 3 years, HEQT returned 12.89%/yr vs 25.87%/yr for QQQ. Their correlation of 0.87 suggests significant overlap in exposure. HEQT charges 0.43%/yr vs 0.18%/yr for QQQ.

Performance

HEQT vs. QQQ - Performance Comparison

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

Returns By Period

In the year-to-date period, HEQT achieves a 3.86% return, which is significantly lower than QQQ's 15.95% return.

HEQT

• 1D: -0.16%
• 1M: -0.30%
• YTD: 3.86%
• 6M: 3.37%
• 1Y: 12.07%
• 3Y*: 12.89%
• 5Y*: —
• 10Y*: —

QQQ

• 1D: -0.42%
• 1M: -0.86%
• YTD: 15.95%
• 6M: 14.16%
• 1Y: 32.28%
• 3Y*: 25.87%
• 5Y*: 15.94%
• 10Y*: 22.01%

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

HEQT vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
HEQT Simplify Hedged Equity ETF	3.86%	10.08%	18.30%	16.61%	-8.25%	2.11%
QQQ Invesco QQQ ETF	15.95%	20.77%	25.58%	54.86%	-32.58%	2.82%

Correlation

The correlation between HEQT and QQQ is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (All Time) Calculated using the full available price history since Nov 2, 2021	0.87

The correlation between HEQT and QQQ has been stable across timeframes, ranging from 0.84 to 0.87 - a consistent structural relationship.

Return for Risk

HEQT vs. QQQ — Risk / Return Rank

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

HEQT

HEQT Risk / Return Rank: 62
HEQT Sharpe Ratio Rank: 61
HEQT Sortino Ratio Rank: 62
HEQT Omega Ratio Rank: 69
HEQT Calmar Ratio Rank: 54
HEQT Martin Ratio Rank: 66

QQQ

QQQ Risk / Return Rank: 59
QQQ Sharpe Ratio Rank: 60
QQQ Sortino Ratio Rank: 56
QQQ Omega Ratio Rank: 58
QQQ Calmar Ratio Rank: 61
QQQ Martin Ratio Rank: 61

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.

HEQT vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Simplify Hedged Equity ETF (HEQT) 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.

	HEQT	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.83	1.81	+0.02
Sortino ratio: Return per unit of downside risk	2.58	2.41	+0.18
Omega ratio: Gain probability vs. loss probability	1.37	1.32	+0.04
Calmar ratio: Return relative to maximum drawdown	2.38	2.71	-0.33
Martin ratio: Return relative to average drawdown	10.73	10.01	+0.71

HEQT vs. QQQ - Sharpe Ratio Comparison

The current HEQT Sharpe Ratio is 1.83, which is comparable to the QQQ Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of HEQT 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.

Drawdowns

HEQT vs. QQQ - Drawdown Comparison

The maximum HEQT drawdown since its inception was -11.51%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for HEQT and QQQ.

Drawdown Indicators

	HEQT	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-11.51%	-82.97%	+71.46%
Max Drawdown (1Y) Largest decline over 1 year	-5.09%	-11.96%	+6.87%
Max Drawdown (3Y) Largest decline over 3 years	-10.57%	-22.77%	+12.20%
Max Drawdown (5Y) Largest decline over 5 years	—	-35.12%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	-1.28%	-4.66%	+3.38%
Average Drawdown Average peak-to-trough decline	-2.76%	-32.72%	+29.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.13%	3.23%	-2.10%

Volatility

HEQT vs. QQQ - Volatility Comparison

The current volatility for Simplify Hedged Equity ETF (HEQT) is 2.06%, while Invesco QQQ ETF (QQQ) has a volatility of 9.17%. This indicates that HEQT 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.

Volatility by Period

	HEQT	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.06%	9.17%	-7.11%
Volatility (6M) Calculated over the trailing 6-month period	5.48%	14.54%	-9.06%
Volatility (1Y) Calculated over the trailing 1-year period	6.65%	17.95%	-11.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.47%	22.69%	-14.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.47%	22.41%	-13.94%

HEQT vs. QQQ - Expense Ratio Comparison

HEQT has a 0.43% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

HEQT vs. QQQ - Dividend Comparison

HEQT's dividend yield for the trailing twelve months is around 1.21%, more than QQQ's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEQT Simplify Hedged Equity ETF	1.21%	1.19%	1.29%	4.10%	3.94%	0.27%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
QQQ Invesco QQQ ETF	0.43%	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

Can I hold both HEQT and QQQ in my portfolio?

HEQT and QQQ have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEQT or QQQ?

QQQ has higher volatility (9.17%) compared to HEQT (2.06%). In terms of maximum drawdown, HEQT dropped -11.51% vs QQQ's -82.97%.

Which ETF is better, HEQT or QQQ?

On 3-year performance, QQQ leads with 25.87% vs 12.89% for HEQT. On fees, QQQ is cheaper at 0.18% per year. On volatility, HEQT has been the lower-risk option at 2.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEQT or QQQ?

Over the 3-year period, QQQ has performed better with a 25.87% return vs 12.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEQT or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.43% for HEQT.

Which ETF pays a higher dividend yield, HEQT or QQQ?

HEQT has the higher dividend yield at 1.21%, compared with 0.43% for QQQ.

What is the main difference between HEQT and QQQ?

HEQT is categorized as Equity Hedged, while QQQ is Nasdaq-100. They also come from different issuers: Simplify and Invesco. Their fees differ too: 0.43% for HEQT and 0.18% for QQQ.

Which has better risk-adjusted returns?

HEQT currently has the higher Sharpe Ratio (1.83 vs 1.81), 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.