QQQ vs SHY
Invesco QQQ Trust, Series 1 vs iShares 1-3 Year Treasury Bond ETF
Which is better, QQQ or SHY?
Large Cap Growth against Short Term Government Bond.
SHY has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | SHY |
|---|---|---|
| Expense Ratio | 0.18% | 0.15%Best |
| AUM | $498.6B | $26.3B |
| Dividend Yield | 0.42% | 3.63% |
| Holdings | 321 | 93 |
| YTD Return | +22.67%Best | +0.44% |
| 1Y Return | +24.33%Best | +1.43% |
| 3Y Return (annualized) | +29.05%Best | +4.14% |
| 5Y Return (annualized) | +17.00%Best | +1.82% |
| Volatility (annualized) | 18.8% | 1.5%Best |
| Max Drawdown | -53.5% | -6.1%Best |
| $10,000 over 5 years | $21,924Best | $10,944 |
| Fund Family | Invesco (US) | iShares by BlackRock (US) |
| Category | Equity | Fixed Income |
| Style | Large Cap Growth | Short Term Government Bond |
| Inception | Mar 10, 1999 | Jul 22, 2002 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2002 to Oct 2, 2026 (24.2 years).
QQQ vs SHY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
QQQ vs SHY Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and iShares 1-3 Year Treasury Bond ETF (SHY) is an ETF from iShares by BlackRock (US). Over the past year QQQ returned +24.33% while SHY returned +1.43%. Year to date, QQQ is up 22.67% versus a gain of 0.44% for SHY.
Over three years, QQQ compounded at +29.05% per year against +4.14% for SHY; over five years the annualized figures are +17.00% and +1.82% respectively. Across the full 24-year window we track, QQQ has the edge at +15.72% annualized vs +0.62%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 1.5% for SHY. 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 -53.5% for QQQ and -6.1% for SHY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at -0.12. They move largely independently of each other.
Fees and Cost Over Time
QQQ charges 0.18% per year while SHY charges 0.15%. On a $10,000 position that is $18 vs $15 annually, a gap of $3 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 3.63% for SHY.
Holdings Overlap
We hold position weights for 102 holdings in QQQ and 69 in SHY, totalling 99.9% and 79.4% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 102 positions we hold weights for in QQQ and 69 in SHY, against full books of 321 and 93.
You are not choosing between two funds in isolation.
Whichever of QQQ and SHY you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or SHY?
QQQ has an expense ratio of 0.18% while SHY charges 0.15%. SHY is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, QQQ or SHY?
Over the past year QQQ returned +24.33% vs +1.43% for SHY, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), QQQ annualized +15.72% vs +0.62% for SHY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or SHY?
QQQ has been the more volatile fund at 18.8% annualized versus 1.5% for SHY. Worst drawdown: QQQ -53.5% vs SHY -6.1%.
Should I hold both QQQ and SHY?
QQQ and SHY have a monthly-return correlation of -0.12, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or SHY?
QQQ yields 0.42% while SHY yields 3.63%, so SHY currently pays the higher dividend yield.
Is SHY better than QQQ?
SHY has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.