INMU vs QQQ
iShares Intermediate Muni Income Active ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. INMU offers more diversification with 456 holdings.
Side-by-Side Comparison
| Metric | INMU | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.18% | |
| AUM | $553M | $496.3B | |
| Dividend Yield | 3.40% | 0.44% | |
| Holdings | 456 | 108 | |
| YTD Return | +0.65% | +16.64% | |
| 1Y Return | +4.84% | +27.27% | |
| 3Y Return (annualized) | +4.44% | +25.96% | |
| 5Y Return (annualized) | +1.35% | +14.54% | |
| Volatility (annualized) | 5.1% | 30.6% | |
| Max Drawdown | -10.7% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 16, 2021 | Mar 10, 1999 |
INMU vs QQQ Performance
iShares Intermediate Muni Income Active ETF (INMU) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year INMU returned +4.84% while QQQ returned +27.27%. Year to date, INMU is up 0.65% versus a gain of 16.64% for QQQ.
Over three years, INMU compounded at +4.44% per year against +25.96% for QQQ; over five years the annualized figures are +1.35% and +14.54% respectively. Across the full 5-year window we track, QQQ has the edge at +13.03% annualized vs +1.78%. 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 5.1% for INMU. 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 -10.7% for INMU 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
INMU charges 0.30% per year while QQQ charges 0.18%. On a $10,000 position that is $30 vs $18 annually, a gap of $12 per year that compounds over a long holding period. On income, INMU currently yields 3.40% against 0.44% for QQQ.
Holdings Overlap
INMU and QQQ share 0 holdings out of 223 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, INMU or QQQ?
INMU has an expense ratio of 0.30% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, INMU or QQQ?
Over the past year INMU returned +4.84% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), INMU annualized +1.78% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, INMU or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.1% for INMU. Worst drawdown: INMU -10.7% vs QQQ -83.0%.
Should I hold both INMU and QQQ?
INMU and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between INMU and QQQ?
INMU and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 223 unique securities.
Which pays a higher dividend, INMU or QQQ?
INMU yields 3.40% while QQQ yields 0.44%, so INMU currently pays the higher dividend yield.
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