MEAR vs QQQ

MEAR vs QQQ

Which is better, MEAR or QQQ?

Municipal Bond against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.

Lower Fees: QQQHigher Returns: QQQ

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

MetricMEARQQQ
Expense Ratio0.26%0.18%Best
AUM$1.4B$483.5B
Dividend Yield2.83%0.44%
Holdings343107
YTD Return-0.78%+16.87%Best
1Y Return-0.39%+22.98%Best
3Y Return (annualized)+2.54%+24.98%Best
5Y Return (annualized)+2.00%+14.39%Best
Volatility (annualized)6.5%Best18.7%
Max Drawdown-14.4%Best-35.1%
$10,000 over 5 years$11,041$19,586Best
Fund FamilyiShares by BlackRock (US)Invesco (US)
CategoryTax PreferredEquity
StyleMunicipal BondLarge Cap Growth
InceptionMar 3, 2015Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Mar 5, 2015 to Sep 11, 2026 (11.5 years).

MEAR 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.

MEAR vs QQQ Performance

iShares Short Maturity Municipal Bond Active ETF (MEAR) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year MEAR returned -0.39% while QQQ returned +22.98%. Year to date, MEAR is down 0.78% versus a gain of 16.87% for QQQ.

Over three years, MEAR compounded at +2.54% per year against +24.98% for QQQ; over five years the annualized figures are +2.00% and +14.39% respectively. Across the full 12-year window we track, QQQ has the edge at +18.10% annualized vs +1.46%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -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 0.03. They move largely independently of each other.

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 2.83% against 0.44% for QQQ.

Holdings Overlap

We hold position weights for 67 holdings in MEAR and 102 in QQQ, totalling 23.6% 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 67 positions we hold weights for in MEAR and 102 in QQQ, against full books of 343 and 107.

You are not choosing between two funds in isolation.

Whichever of MEAR and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

MEARQQQ

Free for up to 10 holdings. No account needed.

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, by $8 a year on a $10,000 investment.

Which performed better, MEAR or QQQ?

Over the past year MEAR returned -0.39% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), MEAR annualized +1.46% vs +18.10% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, MEAR or QQQ?

QQQ has been the more volatile fund at 18.7% annualized versus 6.5% for MEAR. Worst drawdown: MEAR -14.4% vs QQQ -35.1%.

Should I hold both MEAR and QQQ?

MEAR and QQQ have a monthly-return correlation of 0.03, 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, MEAR or QQQ?

MEAR yields 2.83% while QQQ yields 0.44%, so MEAR currently pays the higher dividend yield.

Is QQQ better than MEAR?

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.