MUA vs QQQ
BlackRock MuniAssets Fund, Inc vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MUA offers more diversification with 561 holdings.
Side-by-Side Comparison
| Metric | MUA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.67% | 0.18% | |
| AUM | $564M | $496.3B | |
| Dividend Yield | 5.99% | 0.44% | |
| Holdings | 561 | 108 | |
| YTD Return | -2.04% | +16.64% | |
| 1Y Return | +1.66% | +27.27% | |
| 3Y Return (annualized) | +7.45% | +25.96% | |
| 5Y Return (annualized) | -3.37% | +14.54% | |
| Volatility (annualized) | 13.3% | 30.6% | |
| Max Drawdown | -46.6% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 25, 1993 | Mar 10, 1999 |
MUA vs QQQ Performance
BlackRock MuniAssets Fund, Inc (MUA) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MUA returned +1.66% while QQQ returned +27.27%. Year to date, MUA is down 2.04% versus a gain of 16.64% for QQQ.
Over three years, MUA compounded at +7.45% per year against +25.96% for QQQ; over five years the annualized figures are -3.37% and +14.54% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs +0.30%. 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 13.3% for MUA. 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 -46.6% for MUA 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUA charges 1.67% per year while QQQ charges 0.18%. On a $10,000 position that is $167 vs $18 annually, a gap of $149 per year that compounds over a long holding period. On income, MUA currently yields 5.99% against 0.44% for QQQ.
Holdings Overlap
MUA and QQQ share 0 holdings out of 267 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, MUA or QQQ?
MUA has an expense ratio of 1.67% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $149 per year of difference.
Which performed better, MUA or QQQ?
Over the past year MUA returned +1.66% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), MUA annualized +0.30% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, MUA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.3% for MUA. Worst drawdown: MUA -46.6% vs QQQ -83.0%.
Should I hold both MUA and QQQ?
MUA and QQQ have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUA and QQQ?
MUA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 267 unique securities.
Which pays a higher dividend, MUA or QQQ?
MUA yields 5.99% while QQQ yields 0.44%, so MUA currently pays the higher dividend yield.
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