TOK vs. QQQ
Compare and contrast key facts about iShares MSCI Kokusai ETF (TOK) and Invesco QQQ (QQQ).
TOK and QQQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. TOK is a passively managed fund by iShares that tracks the performance of the MSCI Kokusai Index. It was launched on Dec 10, 2007. 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 TOK 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: TOK or QQQ.
Key characteristics
| TOK | QQQ | |
|---|---|---|
| YTD Return | 16.30% | 16.41% |
| 1Y Return | 24.61% | 26.86% |
| 3Y Return (Ann) | 7.76% | 8.93% |
| 5Y Return (Ann) | 12.87% | 20.65% |
| 10Y Return (Ann) | 10.27% | 17.94% |
| Sharpe Ratio | 2.09 | 1.57 |
| Daily Std Dev | 12.34% | 17.78% |
| Max Drawdown | -56.18% | -82.98% |
| Current Drawdown | -0.45% | -5.49% |
Correlation
The correlation between TOK and QQQ is 0.74, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
TOK vs. QQQ - Performance Comparison
The year-to-date returns for both investments are quite close, with TOK having a 16.30% return and QQQ slightly higher at 16.41%. Over the past 10 years, TOK has underperformed QQQ with an annualized return of 10.27%, while QQQ has yielded a comparatively higher 17.94% 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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TOK vs. QQQ - Expense Ratio Comparison
TOK has a 0.25% expense ratio, which is higher than QQQ's 0.20% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
TOK vs. QQQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Kokusai ETF (TOK) 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
TOK vs. QQQ - Dividend Comparison
TOK's dividend yield for the trailing twelve months is around 1.74%, more than QQQ's 0.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
TOK iShares MSCI Kokusai ETF | 1.74% | 1.95% | 3.55% | 1.66% | 1.52% | 2.12% | 2.74% | 2.60% | 2.56% | 3.02% | 2.64% | 2.38% |
QQQ Invesco QQQ | 0.61% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% | 1.41% | 1.01% |
Drawdowns
TOK vs. QQQ - Drawdown Comparison
The maximum TOK drawdown since its inception was -56.18%, smaller than the maximum QQQ drawdown of -82.98%. Use the drawdown chart below to compare losses from any high point for TOK and QQQ. For additional features, visit the drawdowns tool.
Volatility
TOK vs. QQQ - Volatility Comparison
The current volatility for iShares MSCI Kokusai ETF (TOK) is 4.12%, while Invesco QQQ (QQQ) has a volatility of 6.53%. This indicates that TOK 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.