QQQ vs SUB

Quick Verdict

SUB has a lower expense ratio. QQQ delivered stronger 1-year returns. SUB offers more diversification with 783 holdings.

Lower Fees: SUBHigher Returns: QQQMore Diversified: SUB

Side-by-Side Comparison

MetricQQQSUBWinner
Expense Ratio0.18%0.07%
AUM$455.8B$11.3B
Dividend Yield0.41%2.52%
Holdings1082,925
YTD Return+17.85%+0.86%
1Y Return+26.45%+1.85%
3Y Return (annualized)+26.07%+3.07%
5Y Return (annualized)+15.16%+1.42%
Volatility (annualized)30.6%1.7%
Max Drawdown-83.0%-11.7%
Fund FamilyInvesco (US)iShares by BlackRock (US)
CategoryEquityTax Preferred
InceptionMar 10, 1999Nov 5, 2008

QQQ vs SUB Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares Short-Term National Muni Bond ETF (SUB) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +26.45% while SUB returned +1.85%. Year to date, QQQ is up 17.85% versus a gain of 0.86% for SUB.

Over three years, QQQ compounded at +26.07% per year against +3.07% for SUB; over five years the annualized figures are +15.16% and +1.42% respectively. Across the full 18-year window we track, QQQ has the edge at +13.09% annualized vs +0.81%. 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 1.7% for SUB. 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 -11.7% for SUB. 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while SUB charges 0.07%. On a $10,000 position that is $18 vs $7 annually, a gap of $11 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.52% for SUB.

Holdings Overlap

0.0%overlap

QQQ and SUB share 0 holdings out of 886 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 SUB?

QQQ has an expense ratio of 0.18% while SUB charges 0.07%. SUB is the cheaper option. On a $10,000 investment, that is $11 per year of difference.

Which performed better, QQQ or SUB?

Over the past year QQQ returned +26.45% vs +1.85% for SUB, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), QQQ annualized +13.09% vs +0.81% for SUB. Past performance does not guarantee future results.

Which is riskier, QQQ or SUB?

QQQ has been the more volatile fund at 30.6% annualized versus 1.7% for SUB. Worst drawdown: QQQ -83.0% vs SUB -11.7%.

Should I hold both QQQ and SUB?

QQQ and SUB have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and SUB?

QQQ and SUB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 886 unique securities.

Which pays a higher dividend, QQQ or SUB?

QQQ yields 0.41% while SUB yields 2.52%, so SUB currently pays the higher dividend yield.

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