HIX vs QQQ
Western Asset High Income Fund II Inc. vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HIX offers more diversification with 437 holdings.
Side-by-Side Comparison
| Metric | HIX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 3.82% | 0.18% | |
| AUM | $368M | $496.3B | |
| Dividend Yield | 14.59% | 0.44% | |
| Holdings | 437 | 108 | |
| YTD Return | +2.33% | +19.52% | |
| 1Y Return | +4.92% | +26.68% | |
| 3Y Return (annualized) | +5.43% | +26.64% | |
| 5Y Return (annualized) | -0.76% | +15.36% | |
| Volatility (annualized) | 18.7% | 30.6% | |
| Max Drawdown | -75.2% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 22, 1998 | Mar 10, 1999 |
HIX vs QQQ Performance
Western Asset High Income Fund II Inc. (HIX) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HIX returned +4.92% while QQQ returned +26.68%. Year to date, HIX is up 2.33% versus a gain of 19.52% for QQQ.
Over three years, HIX compounded at +5.43% per year against +26.64% for QQQ; over five years the annualized figures are -0.76% and +15.36% respectively. Across the full 27-year window we track, QQQ has the edge at +13.14% annualized vs -2.37%. 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 18.7% for HIX. 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 -75.2% for HIX 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HIX charges 3.82% per year while QQQ charges 0.18%. On a $10,000 position that is $382 vs $18 annually, a gap of $364 per year that compounds over a long holding period. On income, HIX currently yields 14.59% against 0.44% for QQQ.
Holdings Overlap
HIX and QQQ share 0 holdings out of 390 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, HIX or QQQ?
HIX has an expense ratio of 3.82% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $364 per year of difference.
Which performed better, HIX or QQQ?
Over the past year HIX returned +4.92% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), HIX annualized -2.37% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, HIX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.7% for HIX. Worst drawdown: HIX -75.2% vs QQQ -83.0%.
Should I hold both HIX and QQQ?
HIX and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HIX and QQQ?
HIX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 390 unique securities.
Which pays a higher dividend, HIX or QQQ?
HIX yields 14.59% while QQQ yields 0.44%, so HIX currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.