HYGW vs QQQ
iShares High Yield Corporate Bond BuyWrite Strategy 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 | HYGW | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.18% | |
| AUM | $112M | $496.3B | |
| Dividend Yield | 10.71% | 0.44% | |
| Holdings | 4 | 108 | |
| YTD Return | -3.11% | +15.47% | |
| 1Y Return | -1.24% | +24.44% | |
| 3Y Return (annualized) | +3.30% | +25.47% | |
| 5Y Return (annualized) | - | +14.22% | |
| Volatility (annualized) | 3.6% | 30.6% | |
| Max Drawdown | -5.5% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 18, 2022 | Mar 10, 1999 |
HYGW vs QQQ Performance
iShares High Yield Corporate Bond BuyWrite Strategy ETF (HYGW) 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 HYGW returned -1.24% while QQQ returned +24.44%. Year to date, HYGW is down 3.11% versus a gain of 15.47% for QQQ.
Over three years, HYGW compounded at +3.30% per year against +25.47% for QQQ. Across the full 4-year window we track, QQQ has the edge at +12.99% annualized vs +4.02%. 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 3.6% for HYGW. 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 -5.5% for HYGW 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYGW charges 0.69% per year while QQQ charges 0.18%. On a $10,000 position that is $69 vs $18 annually, a gap of $51 per year that compounds over a long holding period. On income, HYGW currently yields 10.71% against 0.44% for QQQ.
Holdings Overlap
HYGW and QQQ share 0 holdings out of 104 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, HYGW or QQQ?
HYGW has an expense ratio of 0.69% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, HYGW or QQQ?
Over the past year HYGW returned -1.24% vs +24.44% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), HYGW annualized +4.02% vs +12.99% for QQQ. Past performance does not guarantee future results.
Which is riskier, HYGW or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.6% for HYGW. Worst drawdown: HYGW -5.5% vs QQQ -83.0%.
Should I hold both HYGW and QQQ?
HYGW and QQQ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYGW and QQQ?
HYGW and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, HYGW or QQQ?
HYGW yields 10.71% while QQQ yields 0.44%, so HYGW currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.