QQQ vs TFI
Invesco QQQ Trust, Series 1 vs State Street SPDR Nuveen ICE Municipal Bond ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. TFI offers more diversification with 1,885 holdings.
Side-by-Side Comparison
| Metric | QQQ | TFI | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.23% | |
| AUM | $496.3B | $3.1B | |
| Dividend Yield | 0.44% | 3.56% | |
| Holdings | 108 | 1,885 | |
| YTD Return | +16.64% | +0.12% | |
| 1Y Return | +27.27% | +4.42% | |
| 3Y Return (annualized) | +25.96% | +2.98% | |
| 5Y Return (annualized) | +14.54% | -0.37% | |
| Volatility (annualized) | 30.6% | 5.8% | |
| Max Drawdown | -83.0% | -17.1% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Sep 11, 2007 |
QQQ vs TFI Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR Nuveen ICE Municipal Bond ETF (TFI) is a ETF from State Street Investment Management. Over the past year QQQ returned +27.27% while TFI returned +4.42%. Year to date, QQQ is up 16.64% versus a gain of 0.12% for TFI.
Over three years, QQQ compounded at +25.96% per year against +2.98% for TFI; over five years the annualized figures are +14.54% and -0.37% respectively. Across the full 19-year window we track, QQQ has the edge at +13.03% annualized vs +0.80%. 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 5.8% for TFI. 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 -17.1% for TFI. 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TFI charges 0.23%. On a $10,000 position that is $18 vs $23 annually, a gap of $5 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.56% for TFI.
Holdings Overlap
QQQ and TFI share 0 holdings out of 172 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 TFI?
QQQ has an expense ratio of 0.18% while TFI charges 0.23%. QQQ is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, QQQ or TFI?
Over the past year QQQ returned +27.27% vs +4.42% for TFI, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), QQQ annualized +13.03% vs +0.80% for TFI. Past performance does not guarantee future results.
Which is riskier, QQQ or TFI?
QQQ has been the more volatile fund at 30.6% annualized versus 5.8% for TFI. Worst drawdown: QQQ -83.0% vs TFI -17.1%.
Should I hold both QQQ and TFI?
QQQ and TFI have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TFI?
QQQ and TFI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 172 unique securities.
Which pays a higher dividend, QQQ or TFI?
QQQ yields 0.44% while TFI yields 3.56%, so TFI currently pays the higher dividend yield.
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