MUB vs QQQ
iShares National Muni Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
MUB has a lower expense ratio. QQQ delivered stronger 1-year returns. MUB offers more diversification with 6,825 holdings.
Side-by-Side Comparison
| Metric | MUB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.18% | |
| AUM | $45.9B | $496.3B | |
| Dividend Yield | 3.23% | 0.44% | |
| Holdings | 6,825 | 108 | |
| YTD Return | +0.20% | +16.23% | |
| 1Y Return | +4.66% | +26.23% | |
| 3Y Return (annualized) | +3.33% | +25.75% | |
| 5Y Return (annualized) | +0.62% | +14.78% | |
| Volatility (annualized) | 5.4% | 30.6% | |
| Max Drawdown | -14.1% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 7, 2007 | Mar 10, 1999 |
MUB vs QQQ Performance
iShares National Muni Bond ETF (MUB) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MUB returned +4.66% while QQQ returned +26.23%. Year to date, MUB is up 0.20% versus a gain of 16.23% for QQQ.
Over three years, MUB compounded at +3.33% per year against +25.75% for QQQ; over five years the annualized figures are +0.62% and +14.78% respectively. Across the full 19-year window we track, QQQ has the edge at +13.02% annualized vs +0.98%. 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 5.4% for MUB. 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 -14.1% for MUB 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUB charges 0.05% per year while QQQ charges 0.18%. On a $10,000 position that is $5 vs $18 annually, a gap of $13 per year that compounds over a long holding period. On income, MUB currently yields 3.23% against 0.44% for QQQ.
Holdings Overlap
MUB and QQQ share 0 holdings out of 976 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, MUB or QQQ?
MUB has an expense ratio of 0.05% while QQQ charges 0.18%. MUB is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, MUB or QQQ?
Over the past year MUB returned +4.66% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), MUB annualized +0.98% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, MUB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.4% for MUB. Worst drawdown: MUB -14.1% vs QQQ -83.0%.
Should I hold both MUB and QQQ?
MUB and QQQ have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUB and QQQ?
MUB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 976 unique securities.
Which pays a higher dividend, MUB or QQQ?
MUB yields 3.23% while QQQ yields 0.44%, so MUB currently pays the higher dividend yield.
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