QQQ vs TLT
Invesco QQQ Trust, Series 1 vs iShares 20+ Year Treasury Bond ETF
Quick Verdict
TLT has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | TLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $496.3B | $45.8B | |
| Dividend Yield | 0.44% | 4.72% | |
| Holdings | 108 | 48 | |
| YTD Return | +16.64% | -3.20% | |
| 1Y Return | +27.27% | -0.70% | |
| 3Y Return (annualized) | +25.96% | +0.32% | |
| 5Y Return (annualized) | +14.54% | -8.09% | |
| Volatility (annualized) | 30.6% | 13.4% | |
| Max Drawdown | -83.0% | -48.7% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Jul 22, 2002 |
QQQ vs TLT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares 20+ Year Treasury Bond ETF (TLT) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +27.27% while TLT returned -0.70%. Year to date, QQQ is up 16.64% versus a loss of 3.20% for TLT.
Over three years, QQQ compounded at +25.96% per year against +0.32% for TLT; over five years the annualized figures are +14.54% and -8.09% respectively. Across the full 24-year window we track, QQQ has the edge at +13.03% annualized vs +0.79%. 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 13.4% for TLT. 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 -48.7% for TLT. 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 -0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TLT charges 0.15%. On a $10,000 position that is $18 vs $15 annually, a gap of $3 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 4.72% for TLT.
Holdings Overlap
QQQ and TLT share 0 holdings out of 146 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 TLT?
QQQ has an expense ratio of 0.18% while TLT charges 0.15%. TLT is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or TLT?
Over the past year QQQ returned +27.27% vs -0.70% for TLT, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), QQQ annualized +13.03% vs +0.79% for TLT. Past performance does not guarantee future results.
Which is riskier, QQQ or TLT?
QQQ has been the more volatile fund at 30.6% annualized versus 13.4% for TLT. Worst drawdown: QQQ -83.0% vs TLT -48.7%.
Should I hold both QQQ and TLT?
QQQ and TLT have a monthly-return correlation of -0.09, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TLT?
QQQ and TLT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 146 unique securities.
Which pays a higher dividend, QQQ or TLT?
QQQ yields 0.44% while TLT yields 4.72%, so TLT currently pays the higher dividend yield.
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