MUNC 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

MetricMUNCQQQWinner
Expense Ratio0.18%0.18%
AUM$8M$455.8B
Dividend Yield2.50%0.41%
Holdings151108
YTD Return-0.11%+17.46%
1Y Return+3.72%+26.02%
3Y Return (annualized)-+25.51%
5Y Return (annualized)-+15.12%
Volatility (annualized)4.6%30.6%
Max Drawdown-3.2%-83.0%
Fund FamilyNorthern Trust Asset ManagementInvesco (US)
CategoryFixed IncomeEquity
InceptionFeb 28, 2025Mar 10, 1999

MUNC vs QQQ Performance

Northern Trust 2045 Tax-Exempt Distributing Ladder ETF (MUNC) 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 MUNC returned +3.72% while QQQ returned +26.02%. Year to date, MUNC is down 0.11% versus a gain of 17.46% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.6% for MUNC. 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 -3.2% for MUNC 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MUNC charges 0.18% per year while QQQ charges 0.18%. On a $10,000 position that is $18 vs $18 annually. On income, MUNC currently yields 2.50% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

MUNC and QQQ share 0 holdings out of 131 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, MUNC or QQQ?

MUNC 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, MUNC or QQQ?

Over the past year MUNC returned +3.72% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results.

Which is riskier, MUNC or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 4.6% for MUNC. Worst drawdown: MUNC -3.2% vs QQQ -83.0%.

Should I hold both MUNC and QQQ?

MUNC and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between MUNC and QQQ?

MUNC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 131 unique securities.

Which pays a higher dividend, MUNC or QQQ?

MUNC yields 2.50% while QQQ yields 0.41%, so MUNC currently pays the higher dividend yield.

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