MHD vs QQQ
BlackRock MuniHoldings Fund, Inc vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MHD offers more diversification with 192 holdings.
Side-by-Side Comparison
| Metric | MHD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.31% | 0.18% | |
| AUM | $2.2B | $455.8B | |
| Dividend Yield | 5.52% | 0.41% | |
| Holdings | 422 | 108 | |
| YTD Return | +3.59% | +19.68% | |
| 1Y Return | +10.43% | +26.75% | |
| 3Y Return (annualized) | +6.65% | +26.25% | |
| 5Y Return (annualized) | -2.39% | +15.39% | |
| Volatility (annualized) | 13.4% | 30.6% | |
| Max Drawdown | -52.7% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 2, 1997 | Mar 10, 1999 |
MHD vs QQQ Performance
BlackRock MuniHoldings Fund, Inc (MHD) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MHD returned +10.43% while QQQ returned +26.75%. Year to date, MHD is up 3.59% versus a gain of 19.68% for QQQ.
Over three years, MHD compounded at +6.65% per year against +26.25% for QQQ; over five years the annualized figures are -2.39% and +15.39% respectively. Across the full 27-year window we track, QQQ has the edge at +13.15% annualized vs +0.03%. 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 13.4% for MHD. 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 -52.7% for MHD 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 0.13. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MHD charges 2.31% per year while QQQ charges 0.18%. On a $10,000 position that is $231 vs $18 annually, a gap of $213 per year that compounds over a long holding period. On income, MHD currently yields 5.52% against 0.41% for QQQ.
Holdings Overlap
MHD and QQQ share 0 holdings out of 295 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, MHD or QQQ?
MHD has an expense ratio of 2.31% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $213 per year of difference.
Which performed better, MHD or QQQ?
Over the past year MHD returned +10.43% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), MHD annualized +0.03% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, MHD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.4% for MHD. Worst drawdown: MHD -52.7% vs QQQ -83.0%.
Should I hold both MHD and QQQ?
MHD and QQQ have a monthly-return correlation of 0.13, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MHD and QQQ?
MHD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 295 unique securities.
Which pays a higher dividend, MHD or QQQ?
MHD yields 5.52% while QQQ yields 0.41%, so MHD currently pays the higher dividend yield.
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