QQQ vs THYF

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

MetricQQQTHYFWinner
Expense Ratio0.18%0.56%
AUM$455.8B$844M
Dividend Yield0.41%7.03%
Holdings108113
YTD Return+18.20%+2.34%
1Y Return+27.63%+5.44%
3Y Return (annualized)+25.54%+7.80%
5Y Return (annualized)+15.12%-
Volatility (annualized)30.6%5.6%
Max Drawdown-83.0%-5.2%
Fund FamilyInvesco (US)T.Rowe Price
CategoryEquityFixed Income
InceptionMar 10, 1999Oct 25, 2022

QQQ vs THYF Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and T. Rowe Price US High Yield ETF (THYF) is a ETF from T.Rowe Price. Over the past year QQQ returned +27.63% while THYF returned +5.44%. Year to date, QQQ is up 18.20% versus a gain of 2.34% for THYF.

Over three years, QQQ compounded at +25.54% per year against +7.80% for THYF. Across the full 4-year window we track, QQQ has the edge at +13.11% annualized vs +8.14%. 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 5.6% for THYF. 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 -5.2% for THYF. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while THYF charges 0.56%. On a $10,000 position that is $18 vs $56 annually, a gap of $38 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 7.03% for THYF.

Holdings Overlap

0.0%overlap

QQQ and THYF share 0 holdings out of 176 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 THYF?

QQQ has an expense ratio of 0.18% while THYF charges 0.56%. QQQ is the cheaper option. On a $10,000 investment, that is $38 per year of difference.

Which performed better, QQQ or THYF?

Over the past year QQQ returned +27.63% vs +5.44% for THYF, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.11% vs +8.14% for THYF. Past performance does not guarantee future results.

Which is riskier, QQQ or THYF?

QQQ has been the more volatile fund at 30.6% annualized versus 5.6% for THYF. Worst drawdown: QQQ -83.0% vs THYF -5.2%.

Should I hold both QQQ and THYF?

QQQ and THYF have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and THYF?

QQQ and THYF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 176 unique securities.

Which pays a higher dividend, QQQ or THYF?

QQQ yields 0.41% while THYF yields 7.03%, so THYF currently pays the higher dividend yield.

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