DSM vs QQQ
BNY Mellon Strategic Municipal Bond Fund Inc vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. DSM offers more diversification with 229 holdings.
Side-by-Side Comparison
| Metric | DSM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.09% | 0.18% | |
| AUM | $365M | $455.8B | |
| Dividend Yield | 4.47% | 0.41% | |
| Holdings | 229 | 108 | |
| YTD Return | -1.90% | +19.68% | |
| 1Y Return | +9.34% | +26.75% | |
| 3Y Return (annualized) | +6.38% | +26.25% | |
| 5Y Return (annualized) | -2.53% | +15.39% | |
| Volatility (annualized) | 12.8% | 30.6% | |
| Max Drawdown | -59.3% | -83.0% | |
| Fund Family | BNY Mellon Investment Management | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 22, 1989 | Mar 10, 1999 |
DSM vs QQQ Performance
BNY Mellon Strategic Municipal Bond Fund Inc (DSM) is a ETF from BNY Mellon Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DSM returned +9.34% while QQQ returned +26.75%. Year to date, DSM is down 1.90% versus a gain of 19.68% for QQQ.
Over three years, DSM compounded at +6.38% per year against +26.25% for QQQ; over five years the annualized figures are -2.53% and +15.39% respectively. Across the full 27-year window we track, QQQ has the edge at +13.15% annualized vs -0.67%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.8% for DSM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -59.3% for DSM and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.15. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DSM charges 1.09% per year while QQQ charges 0.18%. On a $10,000 position that is $109 vs $18 annually, a gap of $91 per year that compounds over a long holding period. On income, DSM currently yields 4.47% against 0.41% for QQQ.
Holdings Overlap
DSM and QQQ share 0 holdings out of 234 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DSM or QQQ?
DSM has an expense ratio of 1.09% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, DSM or QQQ?
Over the past year DSM returned +9.34% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), DSM annualized -0.67% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, DSM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.8% for DSM. Worst drawdown: DSM -59.3% vs QQQ -83.0%.
Should I hold both DSM and QQQ?
DSM and QQQ have a monthly-return correlation of 0.15, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DSM and QQQ?
DSM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 234 unique securities.
Which pays a higher dividend, DSM or QQQ?
DSM yields 4.47% while QQQ yields 0.41%, so DSM currently pays the higher dividend yield.
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