MEAR vs QQQ
iShares Short Maturity Municipal Bond Active ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | MEAR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.26% | 0.18% | |
| AUM | $1.4B | $455.8B | |
| Dividend Yield | 2.84% | 0.41% | |
| Holdings | 346 | 108 | |
| YTD Return | -0.23% | +18.31% | |
| 1Y Return | +0.60% | +25.37% | |
| 3Y Return (annualized) | +2.84% | +25.79% | |
| 5Y Return (annualized) | +2.11% | +15.20% | |
| Volatility (annualized) | 6.5% | 30.6% | |
| Max Drawdown | -14.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 3, 2015 | Mar 10, 1999 |
MEAR vs QQQ Performance
iShares Short Maturity Municipal Bond Active ETF (MEAR) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MEAR returned +0.60% while QQQ returned +25.37%. Year to date, MEAR is down 0.23% versus a gain of 18.31% for QQQ.
Over three years, MEAR compounded at +2.84% per year against +25.79% for QQQ; over five years the annualized figures are +2.11% and +15.20% respectively. Across the full 11-year window we track, QQQ has the edge at +13.10% annualized vs +1.52%. 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 6.5% for MEAR. 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 -14.4% for MEAR 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 0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MEAR charges 0.26% per year while QQQ charges 0.18%. On a $10,000 position that is $26 vs $18 annually, a gap of $8 per year that compounds over a long holding period. On income, MEAR currently yields 2.84% against 0.41% for QQQ.
Holdings Overlap
MEAR and QQQ share 0 holdings out of 178 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, MEAR or QQQ?
MEAR has an expense ratio of 0.26% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, MEAR or QQQ?
Over the past year MEAR returned +0.60% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), MEAR annualized +1.52% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, MEAR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.5% for MEAR. Worst drawdown: MEAR -14.4% vs QQQ -83.0%.
Should I hold both MEAR and QQQ?
MEAR and QQQ have a monthly-return correlation of 0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MEAR and QQQ?
MEAR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 178 unique securities.
Which pays a higher dividend, MEAR or QQQ?
MEAR yields 2.84% while QQQ yields 0.41%, so MEAR currently pays the higher dividend yield.
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