QQQ vs ULST
Invesco QQQ Trust, Series 1 vs State Street Ultra Short Term Bond ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. ULST offers more diversification with 301 holdings.
Side-by-Side Comparison
| Metric | QQQ | ULST | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.20% | |
| AUM | $455.8B | $527M | |
| Dividend Yield | 0.41% | 4.28% | |
| Holdings | 108 | 328 | |
| YTD Return | +18.31% | +1.52% | |
| 1Y Return | +25.37% | +3.26% | |
| 3Y Return (annualized) | +25.79% | +4.57% | |
| 5Y Return (annualized) | +15.20% | +3.50% | |
| Volatility (annualized) | 30.6% | 1.5% | |
| Max Drawdown | -83.0% | -6.3% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Oct 9, 2013 |
QQQ vs ULST Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street Ultra Short Term Bond ETF (ULST) is a ETF from State Street Investment Management. Over the past year QQQ returned +25.37% while ULST returned +3.26%. Year to date, QQQ is up 18.31% versus a gain of 1.52% for ULST.
Over three years, QQQ compounded at +25.79% per year against +4.57% for ULST; over five years the annualized figures are +15.20% and +3.50% respectively. Across the full 13-year window we track, QQQ has the edge at +13.10% annualized vs +1.45%. 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 1.5% for ULST. 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 -6.3% for ULST. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while ULST charges 0.20%. On a $10,000 position that is $18 vs $20 annually, a gap of $2 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.28% for ULST.
Holdings Overlap
QQQ and ULST share 0 holdings out of 404 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 ULST?
QQQ has an expense ratio of 0.18% while ULST charges 0.20%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, QQQ or ULST?
Over the past year QQQ returned +25.37% vs +3.26% for ULST, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), QQQ annualized +13.10% vs +1.45% for ULST. Past performance does not guarantee future results.
Which is riskier, QQQ or ULST?
QQQ has been the more volatile fund at 30.6% annualized versus 1.5% for ULST. Worst drawdown: QQQ -83.0% vs ULST -6.3%.
Should I hold both QQQ and ULST?
QQQ and ULST have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and ULST?
QQQ and ULST share 0 common holdings with a 0.0% weight overlap. Combined, they hold 404 unique securities.
Which pays a higher dividend, QQQ or ULST?
QQQ yields 0.41% while ULST yields 4.28%, so ULST currently pays the higher dividend yield.
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