OBND vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. OBND offers more diversification with 438 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: OBND

Side-by-Side Comparison

MetricOBNDQQQWinner
Expense Ratio0.55%0.18%
AUM$57M$496.3B
Dividend Yield6.41%0.44%
Holdings438108
YTD Return-2.02%+19.68%
1Y Return+0.25%+26.75%
3Y Return (annualized)+5.52%+26.25%
5Y Return (annualized)-+15.39%
Volatility (annualized)6.3%30.6%
Max Drawdown-15.9%-83.0%
Fund FamilyState Street Investment ManagementInvesco (US)
CategoryAllocation/BalancedEquity
InceptionSep 27, 2021Mar 10, 1999

OBND vs QQQ Performance

State Street Loomis Sayles Opportunistic Bond ETF (OBND) is a ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year OBND returned +0.25% while QQQ returned +26.75%. Year to date, OBND is down 2.02% versus a gain of 19.68% for QQQ.

Over three years, OBND compounded at +5.52% per year against +26.25% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.15% annualized vs +1.54%. 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 6.3% for OBND. 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 -15.9% for OBND 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

OBND charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, OBND currently yields 6.41% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

OBND and QQQ share 0 holdings out of 121 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, OBND or QQQ?

OBND has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.

Which performed better, OBND or QQQ?

Over the past year OBND returned +0.25% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), OBND annualized +1.54% vs +13.15% for QQQ. Past performance does not guarantee future results.

Which is riskier, OBND or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 6.3% for OBND. Worst drawdown: OBND -15.9% vs QQQ -83.0%.

Should I hold both OBND and QQQ?

OBND and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between OBND and QQQ?

OBND and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 121 unique securities.

Which pays a higher dividend, OBND or QQQ?

OBND yields 6.41% while QQQ yields 0.44%, so OBND currently pays the higher dividend yield.

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