MUJ vs QQQ
BlackRock MuniHoldings New Jersey Quality Fund, Inc vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | MUJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.77% | 0.18% | |
| AUM | $657M | $455.8B | |
| Dividend Yield | 5.10% | 0.41% | |
| Holdings | 242 | 108 | |
| YTD Return | +5.99% | +17.46% | |
| 1Y Return | +17.75% | +26.02% | |
| 3Y Return (annualized) | +9.45% | +25.51% | |
| 5Y Return (annualized) | +0.04% | +15.12% | |
| Volatility (annualized) | 12.2% | 30.6% | |
| Max Drawdown | -47.8% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 11, 1998 | Mar 10, 1999 |
MUJ vs QQQ Performance
BlackRock MuniHoldings New Jersey Quality Fund, Inc (MUJ) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MUJ returned +17.75% while QQQ returned +26.02%. Year to date, MUJ is up 5.99% versus a gain of 17.46% for QQQ.
Over three years, MUJ compounded at +9.45% per year against +25.51% for QQQ; over five years the annualized figures are +0.04% and +15.12% respectively. Across the full 27-year window we track, QQQ has the edge at +13.08% annualized vs +0.26%. 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 12.2% for MUJ. 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 -47.8% for MUJ 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
MUJ charges 1.77% per year while QQQ charges 0.18%. On a $10,000 position that is $177 vs $18 annually, a gap of $159 per year that compounds over a long holding period. On income, MUJ currently yields 5.10% against 0.41% for QQQ.
Holdings Overlap
MUJ and QQQ share 0 holdings out of 150 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, MUJ or QQQ?
MUJ has an expense ratio of 1.77% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $159 per year of difference.
Which performed better, MUJ or QQQ?
Over the past year MUJ returned +17.75% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), MUJ annualized +0.26% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, MUJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.2% for MUJ. Worst drawdown: MUJ -47.8% vs QQQ -83.0%.
Should I hold both MUJ and QQQ?
MUJ 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 MUJ and QQQ?
MUJ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 150 unique securities.
Which pays a higher dividend, MUJ or QQQ?
MUJ yields 5.10% while QQQ yields 0.41%, so MUJ currently pays the higher dividend yield.
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