MUNY vs QQQ
Vanguard New York Tax-Exempt Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
MUNY has a lower expense ratio. QQQ delivered stronger 1-year returns. MUNY offers more diversification with 350 holdings.
Side-by-Side Comparison
| Metric | MUNY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.18% | |
| AUM | $447M | $455.8B | |
| Dividend Yield | 3.11% | 0.41% | |
| Holdings | 3,016 | 108 | |
| YTD Return | -0.90% | +19.68% | |
| 1Y Return | +3.11% | +26.75% | |
| 3Y Return (annualized) | - | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 4.3% | 30.6% | |
| Max Drawdown | -3.2% | -83.0% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 20, 2025 | Mar 10, 1999 |
MUNY vs QQQ Performance
Vanguard New York Tax-Exempt Bond ETF (MUNY) is a ETF from Vanguard (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MUNY returned +3.11% while QQQ returned +26.75%. Year to date, MUNY is down 0.90% versus a gain of 19.68% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.3% for MUNY. 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 MUNY 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MUNY charges 0.09% per year while QQQ charges 0.18%. On a $10,000 position that is $9 vs $18 annually, a gap of $9 per year that compounds over a long holding period. On income, MUNY currently yields 3.11% against 0.41% for QQQ.
Holdings Overlap
MUNY and QQQ share 0 holdings out of 453 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, MUNY or QQQ?
MUNY has an expense ratio of 0.09% while QQQ charges 0.18%. MUNY is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, MUNY or QQQ?
Over the past year MUNY returned +3.11% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), MUNY annualized +3.63% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, MUNY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.3% for MUNY. Worst drawdown: MUNY -3.2% vs QQQ -83.0%.
Should I hold both MUNY and QQQ?
MUNY and QQQ have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MUNY and QQQ?
MUNY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 453 unique securities.
Which pays a higher dividend, MUNY or QQQ?
MUNY yields 3.11% while QQQ yields 0.41%, so MUNY currently pays the higher dividend yield.
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