QQQ vs TBT
Invesco QQQ Trust, Series 1 vs ProShares UltraShort 20+ Year Treasury ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | TBT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.93% | |
| AUM | $496.3B | $306M | |
| Dividend Yield | 0.44% | 2.52% | |
| Holdings | 108 | 10 | |
| YTD Return | +16.64% | +11.48% | |
| 1Y Return | +27.27% | +8.68% | |
| 3Y Return (annualized) | +25.96% | +6.21% | |
| 5Y Return (annualized) | +14.54% | +20.94% | |
| Volatility (annualized) | 30.6% | 28.1% | |
| Max Drawdown | -83.0% | -95.2% | |
| Fund Family | Invesco (US) | ProShares | |
| Category | Equity | Alternative | |
| Inception | Mar 10, 1999 | Apr 29, 2008 |
QQQ vs TBT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and ProShares UltraShort 20+ Year Treasury ETF (TBT) is a ETF from ProShares. Over the past year QQQ returned +27.27% while TBT returned +8.68%. Year to date, QQQ is up 16.64% versus a gain of 11.48% for TBT.
Over three years, QQQ compounded at +25.96% per year against +6.21% for TBT; over five years the annualized figures are +14.54% and +20.94% respectively. Across the full 18-year window we track, QQQ has the edge at +13.03% annualized vs -9.53%. 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 28.1% for TBT. 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 -95.2% for TBT. 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 0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TBT charges 0.93%. On a $10,000 position that is $18 vs $93 annually, a gap of $75 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 2.52% for TBT.
Holdings Overlap
QQQ and TBT share 0 holdings out of 103 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 TBT?
QQQ has an expense ratio of 0.18% while TBT charges 0.93%. QQQ is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, QQQ or TBT?
Over the past year QQQ returned +27.27% vs +8.68% for TBT, so QQQ leads on 1-year performance. Over the longest common window we track (18 years), QQQ annualized +13.03% vs -9.53% for TBT. Past performance does not guarantee future results.
Which is riskier, QQQ or TBT?
QQQ has been the more volatile fund at 30.6% annualized versus 28.1% for TBT. Worst drawdown: QQQ -83.0% vs TBT -95.2%.
Should I hold both QQQ and TBT?
QQQ and TBT have a monthly-return correlation of 0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TBT?
QQQ and TBT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, QQQ or TBT?
QQQ yields 0.44% while TBT yields 2.52%, so TBT currently pays the higher dividend yield.
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