HYBB vs QQQ
iShares BB Rated Corporate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HYBB offers more diversification with 1,076 holdings.
Side-by-Side Comparison
| Metric | HYBB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $321M | $496.3B | |
| Dividend Yield | 5.29% | 0.44% | |
| Holdings | 1,076 | 108 | |
| YTD Return | +1.71% | +16.23% | |
| 1Y Return | +4.78% | +26.23% | |
| 3Y Return (annualized) | +7.87% | +25.75% | |
| 5Y Return (annualized) | +3.27% | +14.78% | |
| Volatility (annualized) | 6.9% | 30.6% | |
| Max Drawdown | -15.3% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 6, 2020 | Mar 10, 1999 |
HYBB vs QQQ Performance
iShares BB Rated Corporate Bond ETF (HYBB) 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 HYBB returned +4.78% while QQQ returned +26.23%. Year to date, HYBB is up 1.71% versus a gain of 16.23% for QQQ.
Over three years, HYBB compounded at +7.87% per year against +25.75% for QQQ; over five years the annualized figures are +3.27% and +14.78% respectively. Across the full 6-year window we track, QQQ has the edge at +13.02% annualized vs +3.76%. 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 6.9% for HYBB. 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 -15.3% for HYBB 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYBB charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, HYBB currently yields 5.29% against 0.44% for QQQ.
Holdings Overlap
HYBB and QQQ share 0 holdings out of 938 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, HYBB or QQQ?
HYBB has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, HYBB or QQQ?
Over the past year HYBB returned +4.78% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), HYBB annualized +3.76% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, HYBB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.9% for HYBB. Worst drawdown: HYBB -15.3% vs QQQ -83.0%.
Should I hold both HYBB and QQQ?
HYBB and QQQ have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYBB and QQQ?
HYBB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 938 unique securities.
Which pays a higher dividend, HYBB or QQQ?
HYBB yields 5.29% while QQQ yields 0.44%, so HYBB currently pays the higher dividend yield.
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