PHB vs QQQ
Invesco Fundamental High Yield Corporate Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PHB offers more diversification with 260 holdings.
Side-by-Side Comparison
| Metric | PHB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $387M | $455.8B | |
| Dividend Yield | 5.06% | 0.41% | |
| Holdings | 268 | 108 | |
| YTD Return | +0.43% | +17.85% | |
| 1Y Return | +7.15% | +26.45% | |
| 3Y Return (annualized) | +8.52% | +26.07% | |
| 5Y Return (annualized) | +3.74% | +15.16% | |
| Volatility (annualized) | 16.1% | 30.6% | |
| Max Drawdown | -71.2% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 15, 2007 | Mar 10, 1999 |
PHB vs QQQ Performance
Invesco Fundamental High Yield Corporate Bond ETF (PHB) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PHB returned +7.15% while QQQ returned +26.45%. Year to date, PHB is up 0.43% versus a gain of 17.85% for QQQ.
Over three years, PHB compounded at +8.52% per year against +26.07% for QQQ; over five years the annualized figures are +3.74% and +15.16% respectively. Across the full 18-year window we track, QQQ has the edge at +13.09% annualized vs -1.63%. 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 16.1% for PHB. 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 -71.2% for PHB 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PHB charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, PHB currently yields 5.06% against 0.41% for QQQ.
Holdings Overlap
PHB and QQQ share 0 holdings out of 363 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, PHB or QQQ?
PHB has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, PHB or QQQ?
Over the past year PHB returned +7.15% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), PHB annualized -1.63% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, PHB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.1% for PHB. Worst drawdown: PHB -71.2% vs QQQ -83.0%.
Should I hold both PHB and QQQ?
PHB and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PHB and QQQ?
PHB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 363 unique securities.
Which pays a higher dividend, PHB or QQQ?
PHB yields 5.06% while QQQ yields 0.41%, so PHB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.