QQQ vs SGOV
Invesco QQQ Trust, Series 1 vs iShares 0-3 Month Treasury Bond ETF
Quick Verdict
SGOV has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | SGOV | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.09% | |
| AUM | $496.3B | $102.7B | |
| Dividend Yield | 0.44% | 3.79% | |
| Holdings | 108 | 23 | |
| YTD Return | +16.23% | +2.27% | |
| 1Y Return | +26.23% | +3.81% | |
| 3Y Return (annualized) | +25.75% | +4.61% | |
| 5Y Return (annualized) | +14.78% | +3.70% | |
| Volatility (annualized) | 30.6% | 0.7% | |
| Max Drawdown | -83.0% | -0.3% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | May 26, 2020 |
QQQ vs SGOV Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares 0-3 Month Treasury Bond ETF (SGOV) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +26.23% while SGOV returned +3.81%. Year to date, QQQ is up 16.23% versus a gain of 2.27% for SGOV.
Over three years, QQQ compounded at +25.75% per year against +4.61% for SGOV; over five years the annualized figures are +14.78% and +3.70% respectively. Across the full 6-year window we track, QQQ has the edge at +13.02% annualized vs +2.96%. 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 0.7% for SGOV. 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 -83.0% for QQQ and -0.3% for SGOV. 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
QQQ charges 0.18% per year while SGOV charges 0.09%. On a $10,000 position that is $18 vs $9 annually, a gap of $9 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.79% for SGOV.
Holdings Overlap
QQQ and SGOV share 0 holdings out of 104 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, QQQ or SGOV?
QQQ has an expense ratio of 0.18% while SGOV charges 0.09%. SGOV is the cheaper option. On a $10,000 investment, that is $9 per year of difference.
Which performed better, QQQ or SGOV?
Over the past year QQQ returned +26.23% vs +3.81% for SGOV, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), QQQ annualized +13.02% vs +2.96% for SGOV. Past performance does not guarantee future results.
Which is riskier, QQQ or SGOV?
QQQ has been the more volatile fund at 30.6% annualized versus 0.7% for SGOV. Worst drawdown: QQQ -83.0% vs SGOV -0.3%.
Should I hold both QQQ and SGOV?
QQQ and SGOV 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 QQQ and SGOV?
QQQ and SGOV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or SGOV?
QQQ yields 0.44% while SGOV yields 3.79%, so SGOV currently pays the higher dividend yield.
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