QQQ vs TBF

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQTBFWinner
Expense Ratio0.18%0.95%
AUM$455.8B$86M
Dividend Yield0.41%2.80%
Holdings10810
YTD Return+17.46%+6.20%
1Y Return+26.02%+7.11%
3Y Return (annualized)+25.51%+6.18%
5Y Return (annualized)+15.12%+11.84%
Volatility (annualized)30.6%13.5%
Max Drawdown-83.0%-71.2%
Fund FamilyInvesco (US)ProShares
CategoryEquityAlternative
InceptionMar 10, 1999Aug 18, 2009

QQQ vs TBF Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares Short 20+ Year Treasury (TBF) is a ETF from ProShares. Over the past year QQQ returned +26.02% while TBF returned +7.11%. Year to date, QQQ is up 17.46% versus a gain of 6.20% for TBF.

Over three years, QQQ compounded at +25.51% per year against +6.18% for TBF; over five years the annualized figures are +15.12% and +11.84% respectively. Across the full 17-year window we track, QQQ has the edge at +13.08% annualized vs -3.08%. 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 13.5% for TBF. 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 -71.2% for TBF. 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 0.00. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while TBF charges 0.95%. On a $10,000 position that is $18 vs $95 annually, a gap of $77 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.80% for TBF.

Holdings Overlap

0.0%overlap

QQQ and TBF 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 TBF?

QQQ has an expense ratio of 0.18% while TBF charges 0.95%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.

Which performed better, QQQ or TBF?

Over the past year QQQ returned +26.02% vs +7.11% for TBF, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QQQ annualized +13.08% vs -3.08% for TBF. Past performance does not guarantee future results.

Which is riskier, QQQ or TBF?

QQQ has been the more volatile fund at 30.6% annualized versus 13.5% for TBF. Worst drawdown: QQQ -83.0% vs TBF -71.2%.

Should I hold both QQQ and TBF?

QQQ and TBF have a monthly-return correlation of 0.00, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and TBF?

QQQ and TBF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, QQQ or TBF?

QQQ yields 0.41% while TBF yields 2.80%, so TBF currently pays the higher dividend yield.

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