HYBX vs QQQ
TCW High Yield Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HYBX offers more diversification with 307 holdings.
Side-by-Side Comparison
| Metric | HYBX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | - | $496.3B | |
| Dividend Yield | 7.83% | 0.44% | |
| Holdings | 307 | 108 | |
| YTD Return | +2.77% | +16.64% | |
| 1Y Return | +6.12% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 2.7% | 30.6% | |
| Max Drawdown | -3.9% | -83.0% | |
| Fund Family | TCW ETFs | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 1, 1989 | Mar 10, 1999 |
HYBX vs QQQ Performance
TCW High Yield Bond ETF (HYBX) is a ETF from TCW ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HYBX returned +6.12% while QQQ returned +27.27%. Year to date, HYBX is up 2.77% 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 2.7% for HYBX. 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 -3.9% for HYBX 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYBX charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, HYBX currently yields 7.83% against 0.44% for QQQ.
Holdings Overlap
HYBX and QQQ share 0 holdings out of 321 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, HYBX or QQQ?
HYBX has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, HYBX or QQQ?
Over the past year HYBX returned +6.12% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), HYBX annualized +5.51% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HYBX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 2.7% for HYBX. Worst drawdown: HYBX -3.9% vs QQQ -83.0%.
Should I hold both HYBX and QQQ?
HYBX and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYBX and QQQ?
HYBX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 321 unique securities.
Which pays a higher dividend, HYBX or QQQ?
HYBX yields 7.83% while QQQ yields 0.44%, so HYBX currently pays the higher dividend yield.
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