HYD vs QQQ
VanEck High Yield Muni ETF vs Invesco QQQ Trust, Series 1
Which is better, HYD or QQQ?
Municipal Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | HYD | QQQ |
|---|---|---|
| Expense Ratio | 0.32% | 0.18%Best |
| AUM | $4.5B | $483.5B |
| Dividend Yield | 4.39% | 0.44% |
| Holdings | 2,102 | 107 |
| YTD Return | -3.77% | +17.11%Best |
| 1Y Return | -1.29% | +23.99%Best |
| 3Y Return (annualized) | +2.61% | +24.62%Best |
| 5Y Return (annualized) | -1.50% | +14.23%Best |
| Volatility (annualized) | 63.0% | 17.8%Best |
| Max Drawdown | -56.8% | -35.1%Best |
| $10,000 over 5 years | $9,272 | $19,449Best |
| Fund Family | VanEck | Invesco (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Growth |
| Inception | Feb 4, 2009 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 5, 2009 to Sep 9, 2026 (17.6 years).
HYD vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
HYD vs QQQ Performance
VanEck High Yield Muni ETF (HYD) is an ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year HYD returned -1.29% while QQQ returned +23.99%. Year to date, HYD is down 3.77% versus a gain of 17.11% for QQQ.
Over three years, HYD compounded at +2.61% per year against +24.62% for QQQ; over five years the annualized figures are -1.50% and +14.23% respectively. Across the full 18-year window we track, QQQ has the edge at +19.86% annualized vs +4.58%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HYD has been the more volatile fund, with annualized monthly volatility of 63.0% compared with 17.8% 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 -56.8% for HYD and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.07. They move largely independently of each other.
Fees and Cost Over Time
HYD charges 0.32% per year while QQQ charges 0.18%. On a $10,000 position that is $32 vs $18 annually, a gap of $14 per year that compounds over a long holding period. On income, HYD currently yields 4.39% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 494 holdings in HYD and 102 in QQQ, totalling 35.9% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 494 positions we hold weights for in HYD and 102 in QQQ, against full books of 2,102 and 107.
You are not choosing between two funds in isolation.
Whichever of HYD and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HYD or QQQ?
HYD has an expense ratio of 0.32% while QQQ charges 0.18%. QQQ is the cheaper option, by $14 a year on a $10,000 investment.
Which performed better, HYD or QQQ?
Over the past year HYD returned -1.29% vs +23.99% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), HYD annualized +4.58% vs +19.86% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HYD or QQQ?
HYD has been the more volatile fund at 63.0% annualized versus 17.8% for QQQ. Worst drawdown: HYD -56.8% vs QQQ -35.1%.
Should I hold both HYD and QQQ?
HYD and QQQ have a monthly-return correlation of 0.07, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, HYD or QQQ?
HYD yields 4.39% while QQQ yields 0.44%, so HYD currently pays the higher dividend yield.
Is QQQ better than HYD?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.