HYDW vs QQQ
Xtrackers Low Beta High Yield Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HYDW offers more diversification with 516 holdings.
Side-by-Side Comparison
| Metric | HYDW | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.18% | |
| AUM | $67M | $455.8B | |
| Dividend Yield | 5.73% | 0.41% | |
| Holdings | 586 | 108 | |
| YTD Return | +1.92% | +19.68% | |
| 1Y Return | +4.41% | +26.75% | |
| 3Y Return (annualized) | +7.21% | +26.25% | |
| 5Y Return (annualized) | +3.51% | +15.39% | |
| Volatility (annualized) | 6.6% | 30.6% | |
| Max Drawdown | -18.1% | -83.0% | |
| Fund Family | Xtrackers ETFs | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 11, 2018 | Mar 10, 1999 |
HYDW vs QQQ Performance
Xtrackers Low Beta High Yield Bond ETF (HYDW) is a ETF from Xtrackers ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HYDW returned +4.41% while QQQ returned +26.75%. Year to date, HYDW is up 1.92% versus a gain of 19.68% for QQQ.
Over three years, HYDW compounded at +7.21% per year against +26.25% for QQQ; over five years the annualized figures are +3.51% and +15.39% respectively. Across the full 9-year window we track, QQQ has the edge at +13.15% annualized vs +2.42%. 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 6.6% for HYDW. 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 -18.1% for HYDW 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYDW charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, HYDW currently yields 5.73% against 0.41% for QQQ.
Holdings Overlap
HYDW and QQQ share 0 holdings out of 619 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, HYDW or QQQ?
HYDW has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, HYDW or QQQ?
Over the past year HYDW returned +4.41% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), HYDW annualized +2.42% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, HYDW or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.6% for HYDW. Worst drawdown: HYDW -18.1% vs QQQ -83.0%.
Should I hold both HYDW and QQQ?
HYDW and QQQ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYDW and QQQ?
HYDW and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 619 unique securities.
Which pays a higher dividend, HYDW or QQQ?
HYDW yields 5.73% while QQQ yields 0.41%, so HYDW currently pays the higher dividend yield.
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