GMMF vs QQQ
iShares Government Money Market ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. GMMF offers more diversification with 152 holdings.
Side-by-Side Comparison
| Metric | GMMF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.18% | |
| AUM | $191M | $496.3B | |
| Dividend Yield | 3.86% | 0.44% | |
| Holdings | 152 | 108 | |
| YTD Return | +2.15% | +16.64% | |
| 1Y Return | +3.63% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 0.6% | 30.6% | |
| Max Drawdown | -0.3% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Money Market | Equity | |
| Inception | Feb 4, 2025 | Mar 10, 1999 |
GMMF vs QQQ Performance
iShares Government Money Market ETF (GMMF) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GMMF returned +3.63% while QQQ returned +27.27%. Year to date, GMMF is up 2.15% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 0.6% for GMMF. 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 -0.3% for GMMF 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 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GMMF charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, GMMF currently yields 3.86% against 0.44% for QQQ.
Holdings Overlap
GMMF and QQQ share 0 holdings out of 118 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, GMMF or QQQ?
GMMF has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, GMMF or QQQ?
Over the past year GMMF returned +3.63% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), GMMF annualized +3.83% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, GMMF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 0.6% for GMMF. Worst drawdown: GMMF -0.3% vs QQQ -83.0%.
Should I hold both GMMF and QQQ?
GMMF and QQQ have a monthly-return correlation of 0.16, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GMMF and QQQ?
GMMF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 118 unique securities.
Which pays a higher dividend, GMMF or QQQ?
GMMF yields 3.86% while QQQ yields 0.44%, so GMMF currently pays the higher dividend yield.
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