QQQ vs TBLD
Invesco QQQ Trust, Series 1 vs Thornburg Income Builder Opportunities Trust
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. TBLD offers more diversification with 176 holdings.
Side-by-Side Comparison
| Metric | QQQ | TBLD | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.65% | |
| AUM | $455.8B | $746M | |
| Dividend Yield | 0.41% | 5.40% | |
| Holdings | 108 | 176 | |
| YTD Return | +19.68% | +14.44% | |
| 1Y Return | +26.75% | +18.91% | |
| 3Y Return (annualized) | +26.25% | +21.69% | |
| 5Y Return (annualized) | +15.39% | +9.72% | |
| Volatility (annualized) | 30.6% | 15.2% | |
| Max Drawdown | -83.0% | -33.6% | |
| Fund Family | Invesco (US) | Thornburg Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 10, 1999 | Jul 27, 2021 |
QQQ vs TBLD Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Thornburg Income Builder Opportunities Trust (TBLD) is a ETF from Thornburg Investment Management. Over the past year QQQ returned +26.75% while TBLD returned +18.91%. Year to date, QQQ is up 19.68% versus a gain of 14.44% for TBLD.
Over three years, QQQ compounded at +26.25% per year against +21.69% for TBLD; over five years the annualized figures are +15.39% and +9.72% respectively. Across the full 5-year window we track, QQQ has the edge at +13.15% annualized vs +9.94%. 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 15.2% for TBLD. 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 -33.6% for TBLD. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TBLD charges 1.65%. On a $10,000 position that is $18 vs $165 annually, a gap of $147 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 5.40% for TBLD.
Holdings Overlap
QQQ and TBLD share 5 holdings out of 205 unique holdings combined, representing a 5.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, QQQ or TBLD?
QQQ has an expense ratio of 0.18% while TBLD charges 1.65%. QQQ is the cheaper option. On a $10,000 investment, that is $147 per year of difference.
Which performed better, QQQ or TBLD?
Over the past year QQQ returned +26.75% vs +18.91% for TBLD, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +13.15% vs +9.94% for TBLD. Past performance does not guarantee future results.
Which is riskier, QQQ or TBLD?
QQQ has been the more volatile fund at 30.6% annualized versus 15.2% for TBLD. Worst drawdown: QQQ -83.0% vs TBLD -33.6%.
Should I hold both QQQ and TBLD?
QQQ and TBLD have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TBLD?
QQQ and TBLD share 5 common holdings with a 5.0% weight overlap. Combined, they hold 205 unique securities.
Which pays a higher dividend, QQQ or TBLD?
QQQ yields 0.41% while TBLD yields 5.40%, so TBLD currently pays the higher dividend yield.
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