MBND vs QQQ
State Street Nuveen Municipal Bond ETF vs Invesco QQQ Trust, Series 1
Which is better, MBND or QQQ?
Municipal Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | MBND | QQQ |
|---|---|---|
| Expense Ratio | 0.40% | 0.18%Best |
| AUM | $26M | $498.6B |
| Dividend Yield | 3.51% | 0.42% |
| Holdings | 71 | 321 |
| YTD Return | -6.09% | +22.67%Best |
| 1Y Return | -4.98% | +24.33%Best |
| 3Y Return (annualized) | +2.11% | +29.05%Best |
| 5Y Return (annualized) | -0.75% | +17.00%Best |
| Volatility (annualized) | 5.6%Best | 20.1% |
| Max Drawdown | -13.2%Best | -35.1% |
| $10,000 over 5 years | $9,631 | $21,924Best |
| Fund Family | State Street Investment Management | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Municipal Bond | Large Cap Growth |
| Inception | Feb 4, 2021 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Feb 4, 2021 to Oct 2, 2026 (5.7 years).
MBND vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
MBND vs QQQ Performance
State Street Nuveen Municipal Bond ETF (MBND) is an ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year MBND returned -4.98% while QQQ returned +24.33%. Year to date, MBND is down 6.09% versus a gain of 22.67% for QQQ.
Over three years, MBND compounded at +2.11% per year against +29.05% for QQQ; over five years the annualized figures are -0.75% and +17.00% respectively. Across the full 6-year window we track, QQQ has the edge at +16.28% annualized vs -0.64%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 5.6% for MBND. 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 -13.2% for MBND and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.58. They move together some of the time, and apart the rest.
Fees and Cost Over Time
MBND 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, MBND currently yields 3.51% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 38 holdings in MBND and 102 in QQQ, totalling 52.9% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 38 positions we hold weights for in MBND and 102 in QQQ, against full books of 71 and 321.
You are not choosing between two funds in isolation.
Whichever of MBND and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, MBND or QQQ?
MBND has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option, by $22 a year on a $10,000 investment.
Which performed better, MBND or QQQ?
Over the past year MBND returned -4.98% vs +24.33% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), MBND annualized -0.64% vs +16.28% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, MBND or QQQ?
QQQ has been the more volatile fund at 20.1% annualized versus 5.6% for MBND. Worst drawdown: MBND -13.2% vs QQQ -35.1%.
Should I hold both MBND and QQQ?
MBND and QQQ have a monthly-return correlation of 0.58, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, MBND or QQQ?
MBND yields 3.51% while QQQ yields 0.42%, so MBND currently pays the higher dividend yield.
Is QQQ better than MBND?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.