QQQ vs SHYD
Invesco QQQ Trust, Series 1 vs VanEck Short High Yield Muni ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. SHYD offers more diversification with 541 holdings.
Side-by-Side Comparison
| Metric | QQQ | SHYD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.32% | |
| AUM | $496.3B | $450M | |
| Dividend Yield | 0.44% | 3.63% | |
| Holdings | 108 | 541 | |
| YTD Return | +16.64% | -0.83% | |
| 1Y Return | +27.27% | +1.35% | |
| 3Y Return (annualized) | +25.96% | +3.67% | |
| 5Y Return (annualized) | +14.54% | +0.27% | |
| Volatility (annualized) | 30.6% | 5.7% | |
| Max Drawdown | -83.0% | -31.2% | |
| Fund Family | Invesco (US) | VanEck | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Jan 13, 2014 |
QQQ vs SHYD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and VanEck Short High Yield Muni ETF (SHYD) is a ETF from VanEck. Over the past year QQQ returned +27.27% while SHYD returned +1.35%. Year to date, QQQ is up 16.64% versus a loss of 0.83% for SHYD.
Over three years, QQQ compounded at +25.96% per year against +3.67% for SHYD; over five years the annualized figures are +14.54% and +0.27% respectively. Across the full 13-year window we track, QQQ has the edge at +13.03% annualized vs +2.07%. 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 5.7% for SHYD. 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 -31.2% for SHYD. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SHYD charges 0.32%. On a $10,000 position that is $18 vs $32 annually, a gap of $14 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.63% for SHYD.
Holdings Overlap
QQQ and SHYD share 0 holdings out of 109 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 SHYD?
QQQ has an expense ratio of 0.18% while SHYD charges 0.32%. QQQ is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, QQQ or SHYD?
Over the past year QQQ returned +27.27% vs +1.35% for SHYD, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), QQQ annualized +13.03% vs +2.07% for SHYD. Past performance does not guarantee future results.
Which is riskier, QQQ or SHYD?
QQQ has been the more volatile fund at 30.6% annualized versus 5.7% for SHYD. Worst drawdown: QQQ -83.0% vs SHYD -31.2%.
Should I hold both QQQ and SHYD?
QQQ and SHYD have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SHYD?
QQQ and SHYD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 109 unique securities.
Which pays a higher dividend, QQQ or SHYD?
QQQ yields 0.44% while SHYD yields 3.63%, so SHYD currently pays the higher dividend yield.
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