HYGI vs QQQ
iShares Inflation Hedged High Yield Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | HYGI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.18% | |
| AUM | $5M | $496.3B | |
| Dividend Yield | 4.89% | 0.44% | |
| Holdings | 51 | 108 | |
| YTD Return | +5.19% | +19.52% | |
| 1Y Return | +8.69% | +26.68% | |
| 3Y Return (annualized) | +7.58% | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 7.6% | 30.6% | |
| Max Drawdown | -9.7% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 22, 2022 | Mar 10, 1999 |
HYGI vs QQQ Performance
iShares Inflation Hedged High Yield Bond ETF (HYGI) 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 HYGI returned +8.69% while QQQ returned +26.68%. Year to date, HYGI is up 5.19% versus a gain of 19.52% for QQQ.
Over three years, HYGI compounded at +7.58% per year against +26.64% for QQQ. Across the full 3-year window we track, QQQ has the edge at +13.14% annualized vs +8.44%. 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 7.6% for HYGI. 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 -9.7% for HYGI 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYGI charges 0.52% per year while QQQ charges 0.18%. On a $10,000 position that is $52 vs $18 annually, a gap of $34 per year that compounds over a long holding period. On income, HYGI currently yields 4.89% against 0.44% for QQQ.
Frequently Asked Questions
Which is cheaper, HYGI or QQQ?
HYGI has an expense ratio of 0.52% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, HYGI or QQQ?
Over the past year HYGI returned +8.69% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), HYGI annualized +8.44% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, HYGI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.6% for HYGI. Worst drawdown: HYGI -9.7% vs QQQ -83.0%.
Should I hold both HYGI and QQQ?
HYGI and QQQ have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, HYGI or QQQ?
HYGI yields 4.89% while QQQ yields 0.44%, so HYGI currently pays the higher dividend yield.
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