HGLB vs QQQ
Highland Global Allocation Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | HGLB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.67% | 0.18% | |
| AUM | $282M | $496.3B | |
| Dividend Yield | 8.93% | 0.44% | |
| Holdings | 69 | 108 | |
| YTD Return | -8.27% | +16.64% | |
| 1Y Return | +1.63% | +27.27% | |
| 3Y Return (annualized) | +10.19% | +25.96% | |
| 5Y Return (annualized) | +6.59% | +14.54% | |
| Volatility (annualized) | 31.6% | 30.6% | |
| Max Drawdown | -74.1% | -83.0% | |
| Fund Family | NexPoint | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 5, 1998 | Mar 10, 1999 |
HGLB vs QQQ Performance
Highland Global Allocation Fund (HGLB) is a ETF from NexPoint and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HGLB returned +1.63% while QQQ returned +27.27%. Year to date, HGLB is down 8.27% versus a gain of 16.64% for QQQ.
Over three years, HGLB compounded at +10.19% per year against +25.96% for QQQ; over five years the annualized figures are +6.59% and +14.54% respectively. Across the full 8-year window we track, QQQ has the edge at +13.03% annualized vs -0.74%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HGLB has been the more volatile fund, with annualized monthly volatility of 31.6% compared with 30.6% for QQQ. 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 -74.1% for HGLB 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HGLB charges 2.67% per year while QQQ charges 0.18%. On a $10,000 position that is $267 vs $18 annually, a gap of $249 per year that compounds over a long holding period. On income, HGLB currently yields 8.93% against 0.44% for QQQ.
Holdings Overlap
HGLB and QQQ share 2 holdings out of 152 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, HGLB or QQQ?
HGLB has an expense ratio of 2.67% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $249 per year of difference.
Which performed better, HGLB or QQQ?
Over the past year HGLB returned +1.63% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), HGLB annualized -0.74% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HGLB or QQQ?
HGLB has been the more volatile fund at 31.6% annualized versus 30.6% for QQQ. Worst drawdown: HGLB -74.1% vs QQQ -83.0%.
Should I hold both HGLB and QQQ?
HGLB and QQQ have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HGLB and QQQ?
HGLB and QQQ share 2 common holdings with a 0.0% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, HGLB or QQQ?
HGLB yields 8.93% while QQQ yields 0.44%, so HGLB currently pays the higher dividend yield.
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