ITM vs QQQ
VanEck Intermediate Muni ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ delivered stronger 1-year returns. ITM offers more diversification with 390 holdings.
Side-by-Side Comparison
| Metric | ITM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.18% | |
| AUM | $2.2B | $455.8B | |
| Dividend Yield | 2.92% | 0.41% | |
| Holdings | 1,365 | 108 | |
| YTD Return | -2.12% | +17.46% | |
| 1Y Return | +2.33% | +26.02% | |
| 3Y Return (annualized) | +2.64% | +25.51% | |
| 5Y Return (annualized) | -0.24% | +15.12% | |
| Volatility (annualized) | 24.6% | 30.6% | |
| Max Drawdown | -46.2% | -83.0% | |
| Fund Family | VanEck | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 4, 2007 | Mar 10, 1999 |
ITM vs QQQ Performance
VanEck Intermediate Muni ETF (ITM) is a ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ITM returned +2.33% while QQQ returned +26.02%. Year to date, ITM is down 2.12% versus a gain of 17.46% for QQQ.
Over three years, ITM compounded at +2.64% per year against +25.51% for QQQ; over five years the annualized figures are -0.24% and +15.12% respectively. Across the full 19-year window we track, QQQ has the edge at +13.08% annualized vs +3.22%. 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 24.6% for ITM. 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 -46.2% for ITM 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 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ITM charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, ITM currently yields 2.92% against 0.41% for QQQ.
Holdings Overlap
ITM and QQQ share 0 holdings out of 493 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, ITM or QQQ?
ITM has an expense ratio of 0.18% while QQQ charges 0.18%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, ITM or QQQ?
Over the past year ITM returned +2.33% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), ITM annualized +3.22% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, ITM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 24.6% for ITM. Worst drawdown: ITM -46.2% vs QQQ -83.0%.
Should I hold both ITM and QQQ?
ITM and QQQ have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ITM and QQQ?
ITM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 493 unique securities.
Which pays a higher dividend, ITM or QQQ?
ITM yields 2.92% while QQQ yields 0.41%, so ITM currently pays the higher dividend yield.
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