MUNB vs QQQ

Quick Verdict

QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: TiedHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricMUNBQQQWinner
Expense Ratio0.18%0.18%
AUM$14M$455.8B
Dividend Yield1.79%0.41%
Holdings231108
YTD Return+0.22%+17.85%
1Y Return+2.17%+26.45%
3Y Return (annualized)-+26.07%
5Y Return (annualized)-+15.16%
Volatility (annualized)3.3%30.6%
Max Drawdown-2.5%-83.0%
Fund FamilyNorthern Trust Asset ManagementInvesco (US)
CategoryFixed IncomeEquity
InceptionMar 1, 2025Mar 10, 1999

MUNB vs QQQ Performance

Northern Trust 2035 Tax-Exempt Distributing Ladder ETF (MUNB) is a ETF from Northern Trust Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MUNB returned +2.17% while QQQ returned +26.45%. Year to date, MUNB is up 0.22% versus a gain of 17.85% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.3% for MUNB. 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 -2.5% for MUNB 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUNB charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, MUNB currently yields 1.79% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

MUNB and QQQ share 0 holdings out of 122 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, MUNB or QQQ?

MUNB has an expense ratio of 0.18% while QQQ charges 0.18%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, MUNB or QQQ?

Over the past year MUNB returned +2.17% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results.

Which is riskier, MUNB or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 3.3% for MUNB. Worst drawdown: MUNB -2.5% vs QQQ -83.0%.

Should I hold both MUNB and QQQ?

MUNB and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUNB and QQQ?

MUNB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 122 unique securities.

Which pays a higher dividend, MUNB or QQQ?

MUNB yields 1.79% while QQQ yields 0.41%, so MUNB currently pays the higher dividend yield.

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