PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
HSCZ vs. QQQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HSCZ vs. QQQ

Last updated Jun 14, 2026

HSCZ (iShares Currency Hedged MSCI EAFE Small Cap ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - HSCZ is a Foreign Small & Mid Cap Equities fund tracking the MSCI EAFE Small-Cap 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, HSCZ returned 12.35%/yr vs 21.79%/yr for QQQ. A 0.62 correlation means they provide meaningful diversification when combined. HSCZ charges 0.43%/yr vs 0.18%/yr for QQQ.

Performance

HSCZ vs. QQQ - Performance Comparison

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

Loading charts...

Returns By Period

In the year-to-date period, HSCZ achieves a 10.99% return, which is significantly lower than QQQ's 17.57% return. Over the past 10 years, HSCZ has underperformed QQQ with an annualized return of 12.35%, while QQQ has yielded a comparatively higher 21.79% annualized return.

HSCZ

1D
0.71%
1M
0.48%
YTD
10.99%
6M
13.18%
1Y
29.11%
3Y*
18.32%
5Y*
10.94%
10Y*
12.35%

QQQ

1D
0.59%
1M
0.22%
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)

HSCZ vs. QQQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
HSCZ
iShares Currency Hedged MSCI EAFE Small Cap ETF		10.99%25.74%12.89%17.03%-11.46%17.75%6.40%27.89%-13.99%24.52%
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 HSCZ and QQQ is 0.60, 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

0.60

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

0.60

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

0.67

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

0.64

Correlation (All Time)
Calculated using the full available price history since Jul 14, 2015

0.62

The correlation between HSCZ and QQQ has been stable across timeframes, ranging from 0.60 to 0.67 - a consistent structural relationship.

HSCZ vs. QQQ - Sectors Allocation Comparison

Sectors
HSCZ
QQQ

Industrials

24.4%
2.6%

Financial Services

13.3%
0.2%

Technology

10.8%
58.7%

Consumer Cyclical

10.8%
11.4%

Basic Materials

10.8%
1.0%

Real Estate

9.5%
0.1%

Healthcare

4.8%
3.7%

Consumer Defensive

3.9%
6.4%

Energy

3.8%
0.5%

Communication Services

3.1%
14.3%

Utilities

2.4%
1.2%

Industrials

HSCZ
24.4%
QQQ
2.6%

Financial Services

HSCZ
13.3%
QQQ
0.2%

Technology

HSCZ
10.8%
QQQ
58.7%

Consumer Cyclical

HSCZ
10.8%
QQQ
11.4%

Basic Materials

HSCZ
10.8%
QQQ
1.0%

Real Estate

HSCZ
9.5%
QQQ
0.1%

Healthcare

HSCZ
4.8%
QQQ
3.7%

Consumer Defensive

HSCZ
3.9%
QQQ
6.4%

Energy

HSCZ
3.8%
QQQ
0.5%

Communication Services

HSCZ
3.1%
QQQ
14.3%

Utilities

HSCZ
2.4%
QQQ
1.2%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Currency Hedged MSCI EAFE Small Cap ETF

Invesco QQQ ETF

Often compared with HSCZ:
HSCZ vs. HEFAHSCZ vs. MSMLXHSCZ vs. ISVLHSCZ vs. EWUSHSCZ vs. HEWJHSCZ vs. HEZUHSCZ vs. DEMSX
Often compared with QQQ:
QQQ vs. SPYQQQ vs. VOOQQQ vs. VGTQQQ vs. TQQQQQQ vs. SMHQQQ vs. QQQMQQQ vs. QQQI

Return for Risk

HSCZ vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
HSCZ
HSCZ Risk / Return Rank: 8080
Overall Rank
HSCZ Sharpe Ratio Rank: 8686
Sharpe Ratio Rank
HSCZ Sortino Ratio Rank: 8787
Sortino Ratio Rank
HSCZ Omega Ratio Rank: 8585
Omega Ratio Rank
HSCZ Calmar Ratio Rank: 6767
Calmar Ratio Rank
HSCZ Martin Ratio Rank: 7575
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.

HSCZ vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) 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.

HSCZQQQDifference
Sharpe ratioReturn per unit of total volatility
2.45
2.09

+0.35

Sortino ratioReturn per unit of downside risk
3.44
2.73

+0.70

Omega ratioGain probability vs. loss probability

1.45

1.37

+0.08

Calmar ratioReturn relative to maximum drawdown

2.95

3.01

-0.05

Martin ratioReturn relative to average drawdown

12.57

11.22

+1.35

HSCZ vs. QQQ - Sharpe Ratio Comparison

The current HSCZ Sharpe Ratio is 2.45, which is comparable to the QQQ Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of HSCZ 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.

Loading charts...

Drawdowns

HSCZ vs. QQQ - Drawdown Comparison

The maximum HSCZ drawdown since its inception was -34.89%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for HSCZ and QQQ.

Loading charts...

Drawdown Indicators

HSCZQQQDifference

Max Drawdown

Largest peak-to-trough decline

-34.89%

-82.97%

+48.08%

Max Drawdown (1Y)

Largest decline over 1 year

-9.61%

-11.96%

+2.35%

Max Drawdown (3Y)

Largest decline over 3 years

-12.81%

-22.77%

+9.96%

Max Drawdown (5Y)

Largest decline over 5 years

-20.11%

-35.12%

+15.01%

Max Drawdown (10Y)

Largest decline over 10 years

-34.89%

-35.12%

+0.23%

Current Drawdown

Current decline from peak

-0.60%

-3.33%

+2.73%

Average Drawdown

Average peak-to-trough decline

-4.64%

-32.75%

+28.11%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.25%

3.20%

-0.95%

Volatility

HSCZ vs. QQQ - Volatility Comparison

The current volatility for iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) is 4.08%, while Invesco QQQ ETF (QQQ) has a volatility of 7.56%. This indicates that HSCZ 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.

Loading charts...

Volatility by Period

HSCZQQQDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.08%

7.56%

-3.48%

Volatility (6M)

Calculated over the trailing 6-month period

9.68%

13.81%

-4.13%

Volatility (1Y)

Calculated over the trailing 1-year period

11.60%

17.19%

-5.59%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

13.52%

22.55%

-9.03%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

15.68%

22.38%

-6.70%

HSCZ vs. QQQ - Expense Ratio Comparison

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

Dividends

HSCZ vs. QQQ - Dividend Comparison

HSCZ's dividend yield for the trailing twelve months is around 2.93%, more than QQQ's 0.39% yield.

PositionTTM20252024202320222021202020192018201720162015
HSCZ
iShares Currency Hedged MSCI EAFE Small Cap ETF		2.93%3.25%3.26%2.98%26.91%2.90%1.46%4.66%6.15%2.52%2.57%1.75%
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

HSCZ and QQQ have a correlation of 0.60, 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 HSCZ (4.08%). In terms of maximum drawdown, HSCZ dropped -34.89% vs QQQ's -82.97%.

On 10-year performance, QQQ leads with 21.79% vs 12.35% for HSCZ. On fees, QQQ is cheaper at 0.18% per year. On volatility, HSCZ has been the lower-risk option at 4.08%. 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 12.35%. 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 0.43% for HSCZ.

HSCZ has the higher dividend yield at 2.93%, compared with 0.39% for QQQ.

HSCZ is categorized as Foreign Small & Mid Cap Equities, while QQQ is Nasdaq-100. HSCZ tracks MSCI EAFE Small-Cap 100% Hedged to USD Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.43% for HSCZ and 0.18% for QQQ.

HSCZ currently has the higher Sharpe Ratio (2.45 vs 2.09), 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.

Portfolio Optimizer

Find the right allocation for HSCZ and QQQ

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer