NHYM vs QQQ
Nuveen High Yield Municipal Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NHYM offers more diversification with 263 holdings.
Side-by-Side Comparison
| Metric | NHYM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $137M | $496.3B | |
| Dividend Yield | 4.58% | 0.44% | |
| Holdings | 263 | 108 | |
| YTD Return | +1.66% | +16.64% | |
| 1Y Return | +8.80% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 5.5% | 30.6% | |
| Max Drawdown | -6.1% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 22, 2025 | Mar 10, 1999 |
NHYM vs QQQ Performance
Nuveen High Yield Municipal Income ETF (NHYM) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NHYM returned +8.80% while QQQ returned +27.27%. Year to date, NHYM is up 1.66% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 5.5% for NHYM. 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 -6.1% for NHYM 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NHYM charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, NHYM currently yields 4.58% against 0.44% for QQQ.
Holdings Overlap
NHYM and QQQ share 0 holdings out of 207 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, NHYM or QQQ?
NHYM has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, NHYM or QQQ?
Over the past year NHYM returned +8.80% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), NHYM annualized +3.29% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, NHYM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.5% for NHYM. Worst drawdown: NHYM -6.1% vs QQQ -83.0%.
Should I hold both NHYM and QQQ?
NHYM and QQQ have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NHYM and QQQ?
NHYM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 207 unique securities.
Which pays a higher dividend, NHYM or QQQ?
NHYM yields 4.58% while QQQ yields 0.44%, so NHYM currently pays the higher dividend yield.
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