JNK vs QQQ
State Street SPDR Bloomberg High Yield Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. JNK offers more diversification with 1,231 holdings.
Side-by-Side Comparison
| Metric | JNK | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $6.7B | $496.3B | |
| Dividend Yield | 6.65% | 0.44% | |
| Holdings | 1,231 | 108 | |
| YTD Return | +2.47% | +16.64% | |
| 1Y Return | +5.94% | +27.27% | |
| 3Y Return (annualized) | +8.57% | +25.96% | |
| 5Y Return (annualized) | +3.57% | +14.54% | |
| Volatility (annualized) | 10.9% | 30.6% | |
| Max Drawdown | -46.2% | -83.0% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 28, 2007 | Mar 10, 1999 |
JNK vs QQQ Performance
State Street SPDR Bloomberg High Yield Bond ETF (JNK) is a ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year JNK returned +5.94% while QQQ returned +27.27%. Year to date, JNK is up 2.47% versus a gain of 16.64% for QQQ.
Over three years, JNK compounded at +8.57% per year against +25.96% for QQQ; over five years the annualized figures are +3.57% and +14.54% respectively. Across the full 19-year window we track, QQQ has the edge at +13.03% annualized vs -0.41%. 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 10.9% for JNK. 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 JNK 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
JNK charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, JNK currently yields 6.65% against 0.44% for QQQ.
Holdings Overlap
JNK and QQQ share 0 holdings out of 145 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, JNK or QQQ?
JNK has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, JNK or QQQ?
Over the past year JNK returned +5.94% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), JNK annualized -0.41% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, JNK or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.9% for JNK. Worst drawdown: JNK -46.2% vs QQQ -83.0%.
Should I hold both JNK and QQQ?
JNK and QQQ have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between JNK and QQQ?
JNK and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 145 unique securities.
Which pays a higher dividend, JNK or QQQ?
JNK yields 6.65% while QQQ yields 0.44%, so JNK currently pays the higher dividend yield.
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