MHF vs QQQ
Western Asset Municipal High Income Fund Inc. vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MHF offers more diversification with 248 holdings.
Side-by-Side Comparison
| Metric | MHF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.71% | 0.18% | |
| AUM | $154M | $496.3B | |
| Dividend Yield | 6.02% | 0.44% | |
| Holdings | 248 | 108 | |
| YTD Return | +3.45% | +16.64% | |
| 1Y Return | +7.64% | +27.27% | |
| 3Y Return (annualized) | +8.90% | +25.96% | |
| 5Y Return (annualized) | +1.27% | +14.54% | |
| Volatility (annualized) | 10.3% | 30.6% | |
| Max Drawdown | -44.6% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 28, 1988 | Mar 10, 1999 |
MHF vs QQQ Performance
Western Asset Municipal High Income Fund Inc. (MHF) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MHF returned +7.64% while QQQ returned +27.27%. Year to date, MHF is up 3.45% versus a gain of 16.64% for QQQ.
Over three years, MHF compounded at +8.90% per year against +25.96% for QQQ; over five years the annualized figures are +1.27% and +14.54% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs +0.12%. 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 10.3% for MHF. 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 -44.6% for MHF 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MHF charges 0.71% per year while QQQ charges 0.18%. On a $10,000 position that is $71 vs $18 annually, a gap of $53 per year that compounds over a long holding period. On income, MHF currently yields 6.02% against 0.44% for QQQ.
Holdings Overlap
MHF and QQQ share 0 holdings out of 228 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, MHF or QQQ?
MHF has an expense ratio of 0.71% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, MHF or QQQ?
Over the past year MHF returned +7.64% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), MHF annualized +0.12% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, MHF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.3% for MHF. Worst drawdown: MHF -44.6% vs QQQ -83.0%.
Should I hold both MHF and QQQ?
MHF and QQQ have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MHF and QQQ?
MHF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 228 unique securities.
Which pays a higher dividend, MHF or QQQ?
MHF yields 6.02% while QQQ yields 0.44%, so MHF currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.