MYI vs QQQ
BlackRock MuniYield Quality Fund III, Inc vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MYI offers more diversification with 305 holdings.
Side-by-Side Comparison
| Metric | MYI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.65% | 0.18% | |
| AUM | $1.4B | $496.3B | |
| Dividend Yield | 5.75% | 0.44% | |
| Holdings | 305 | 108 | |
| YTD Return | +2.21% | +16.64% | |
| 1Y Return | +9.63% | +27.27% | |
| 3Y Return (annualized) | +7.05% | +25.96% | |
| 5Y Return (annualized) | -1.44% | +14.54% | |
| Volatility (annualized) | 12.0% | 30.6% | |
| Max Drawdown | -56.0% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 13, 1992 | Mar 10, 1999 |
MYI vs QQQ Performance
BlackRock MuniYield Quality Fund III, Inc (MYI) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MYI returned +9.63% while QQQ returned +27.27%. Year to date, MYI is up 2.21% versus a gain of 16.64% for QQQ.
Over three years, MYI compounded at +7.05% per year against +25.96% for QQQ; over five years the annualized figures are -1.44% and +14.54% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs +0.09%. 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 12.0% for MYI. 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 -56.0% for MYI 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 0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MYI charges 2.65% per year while QQQ charges 0.18%. On a $10,000 position that is $265 vs $18 annually, a gap of $247 per year that compounds over a long holding period. On income, MYI currently yields 5.75% against 0.44% for QQQ.
Holdings Overlap
MYI and QQQ share 0 holdings out of 254 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, MYI or QQQ?
MYI has an expense ratio of 2.65% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $247 per year of difference.
Which performed better, MYI or QQQ?
Over the past year MYI returned +9.63% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), MYI annualized +0.09% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, MYI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.0% for MYI. Worst drawdown: MYI -56.0% vs QQQ -83.0%.
Should I hold both MYI and QQQ?
MYI and QQQ have a monthly-return correlation of 0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MYI and QQQ?
MYI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 254 unique securities.
Which pays a higher dividend, MYI or QQQ?
MYI yields 5.75% while QQQ yields 0.44%, so MYI currently pays the higher dividend yield.
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