HIPS vs QQQ
GraniteShares HIPS US High Income ETF 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 | HIPS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.17% | 0.18% | |
| AUM | $119M | $496.3B | |
| Dividend Yield | 11.25% | 0.44% | |
| Holdings | 81 | 108 | |
| YTD Return | +6.67% | +16.64% | |
| 1Y Return | +8.95% | +27.27% | |
| 3Y Return (annualized) | +10.58% | +25.96% | |
| 5Y Return (annualized) | +4.96% | +14.54% | |
| Volatility (annualized) | 18.5% | 30.6% | |
| Max Drawdown | -61.6% | -83.0% | |
| Fund Family | GraniteShares | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jan 7, 2015 | Mar 10, 1999 |
HIPS vs QQQ Performance
GraniteShares HIPS US High Income ETF (HIPS) is a ETF from GraniteShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HIPS returned +8.95% while QQQ returned +27.27%. Year to date, HIPS is up 6.67% versus a gain of 16.64% for QQQ.
Over three years, HIPS compounded at +10.58% per year against +25.96% for QQQ; over five years the annualized figures are +4.96% and +14.54% respectively. Across the full 12-year window we track, QQQ has the edge at +13.03% annualized vs +0.15%. 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 18.5% for HIPS. 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 -61.6% for HIPS 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HIPS charges 1.17% per year while QQQ charges 0.18%. On a $10,000 position that is $117 vs $18 annually, a gap of $99 per year that compounds over a long holding period. On income, HIPS currently yields 11.25% against 0.44% for QQQ.
Holdings Overlap
HIPS and QQQ share 0 holdings out of 142 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, HIPS or QQQ?
HIPS has an expense ratio of 1.17% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $99 per year of difference.
Which performed better, HIPS or QQQ?
Over the past year HIPS returned +8.95% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), HIPS annualized +0.15% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HIPS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.5% for HIPS. Worst drawdown: HIPS -61.6% vs QQQ -83.0%.
Should I hold both HIPS and QQQ?
HIPS and QQQ have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HIPS and QQQ?
HIPS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 142 unique securities.
Which pays a higher dividend, HIPS or QQQ?
HIPS yields 11.25% while QQQ yields 0.44%, so HIPS currently pays the higher dividend yield.
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