MQY vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MQY offers more diversification with 201 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: MQY

Side-by-Side Comparison

MetricMQYQQQWinner
Expense Ratio1.90%0.18%
AUM$1.8B$455.8B
Dividend Yield5.56%0.41%
Holdings456108
YTD Return+3.77%+18.20%
1Y Return+8.93%+27.63%
3Y Return (annualized)+5.96%+25.54%
5Y Return (annualized)-2.22%+15.12%
Volatility (annualized)12.5%30.6%
Max Drawdown-50.0%-83.0%
Fund FamilyBlackRock, Inc. (US)Invesco (US)
CategoryTax PreferredEquity
InceptionJun 26, 1992Mar 10, 1999

MQY vs QQQ Performance

BlackRock MuniYield Quality Fund, Inc (MQY) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MQY returned +8.93% while QQQ returned +27.63%. Year to date, MQY is up 3.77% versus a gain of 18.20% for QQQ.

Over three years, MQY compounded at +5.96% per year against +25.54% for QQQ; over five years the annualized figures are -2.22% and +15.12% respectively. Across the full 27-year window we track, QQQ has the edge at +13.11% annualized vs +0.57%. 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 12.5% for MQY. 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 -50.0% for MQY 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

MQY charges 1.90% per year while QQQ charges 0.18%. On a $10,000 position that is $190 vs $18 annually, a gap of $172 per year that compounds over a long holding period. On income, MQY currently yields 5.56% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

MQY and QQQ share 0 holdings out of 304 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, MQY or QQQ?

MQY has an expense ratio of 1.90% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $172 per year of difference.

Which performed better, MQY or QQQ?

Over the past year MQY returned +8.93% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), MQY annualized +0.57% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, MQY or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 12.5% for MQY. Worst drawdown: MQY -50.0% vs QQQ -83.0%.

Should I hold both MQY and QQQ?

MQY 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 MQY and QQQ?

MQY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 304 unique securities.

Which pays a higher dividend, MQY or QQQ?

MQY yields 5.56% while QQQ yields 0.41%, so MQY currently pays the higher dividend yield.

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