HYZD vs QQQ
WisdomTree Interest Rate Hedged High Yield Bond Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HYZD offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | HYZD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.43% | 0.18% | |
| AUM | $273M | $496.3B | |
| Dividend Yield | 5.90% | 0.44% | |
| Holdings | 505 | 108 | |
| YTD Return | +3.85% | +16.64% | |
| 1Y Return | +6.95% | +27.27% | |
| 3Y Return (annualized) | +8.46% | +25.96% | |
| 5Y Return (annualized) | +6.31% | +14.54% | |
| Volatility (annualized) | 7.7% | 30.6% | |
| Max Drawdown | -33.1% | -83.0% | |
| Fund Family | WisdomTree Investments | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 18, 2013 | Mar 10, 1999 |
HYZD vs QQQ Performance
WisdomTree Interest Rate Hedged High Yield Bond Fund (HYZD) is a ETF from WisdomTree Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HYZD returned +6.95% while QQQ returned +27.27%. Year to date, HYZD is up 3.85% versus a gain of 16.64% for QQQ.
Over three years, HYZD compounded at +8.46% per year against +25.96% for QQQ; over five years the annualized figures are +6.31% and +14.54% respectively. Across the full 13-year window we track, QQQ has the edge at +13.03% annualized vs +1.60%. 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 7.7% for HYZD. 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 -33.1% for HYZD 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HYZD charges 0.43% per year while QQQ charges 0.18%. On a $10,000 position that is $43 vs $18 annually, a gap of $25 per year that compounds over a long holding period. On income, HYZD currently yields 5.90% against 0.44% for QQQ.
Holdings Overlap
HYZD and QQQ share 0 holdings out of 488 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, HYZD or QQQ?
HYZD has an expense ratio of 0.43% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, HYZD or QQQ?
Over the past year HYZD returned +6.95% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), HYZD annualized +1.60% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HYZD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.7% for HYZD. Worst drawdown: HYZD -33.1% vs QQQ -83.0%.
Should I hold both HYZD and QQQ?
HYZD and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYZD and QQQ?
HYZD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 488 unique securities.
Which pays a higher dividend, HYZD or QQQ?
HYZD yields 5.90% while QQQ yields 0.44%, so HYZD currently pays the higher dividend yield.
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