HYGV vs QQQ
FlexShares High Yield Value-Scored Bond Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HYGV offers more diversification with 978 holdings.
Side-by-Side Comparison
| Metric | HYGV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.18% | |
| AUM | $1.1B | $496.3B | |
| Dividend Yield | 7.40% | 0.44% | |
| Holdings | 978 | 108 | |
| YTD Return | +2.77% | +16.64% | |
| 1Y Return | +6.18% | +27.27% | |
| 3Y Return (annualized) | +8.41% | +25.96% | |
| 5Y Return (annualized) | +3.60% | +14.54% | |
| Volatility (annualized) | 9.1% | 30.6% | |
| Max Drawdown | -25.9% | -83.0% | |
| Fund Family | Flexshares Trust | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 17, 2018 | Mar 10, 1999 |
HYGV vs QQQ Performance
FlexShares High Yield Value-Scored Bond Index Fund (HYGV) is a ETF from Flexshares Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HYGV returned +6.18% while QQQ returned +27.27%. Year to date, HYGV is up 2.77% versus a gain of 16.64% for QQQ.
Over three years, HYGV compounded at +8.41% per year against +25.96% for QQQ; over five years the annualized figures are +3.60% and +14.54% respectively. Across the full 8-year window we track, QQQ has the edge at +13.03% annualized vs +2.46%. 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 9.1% for HYGV. 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 -25.9% for HYGV 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYGV charges 0.37% per year while QQQ charges 0.18%. On a $10,000 position that is $37 vs $18 annually, a gap of $19 per year that compounds over a long holding period. On income, HYGV currently yields 7.40% against 0.44% for QQQ.
Holdings Overlap
HYGV and QQQ share 0 holdings out of 910 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, HYGV or QQQ?
HYGV has an expense ratio of 0.37% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, HYGV or QQQ?
Over the past year HYGV returned +6.18% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), HYGV annualized +2.46% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HYGV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.1% for HYGV. Worst drawdown: HYGV -25.9% vs QQQ -83.0%.
Should I hold both HYGV and QQQ?
HYGV and QQQ have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYGV and QQQ?
HYGV and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 910 unique securities.
Which pays a higher dividend, HYGV or QQQ?
HYGV yields 7.40% while QQQ yields 0.44%, so HYGV currently pays the higher dividend yield.
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