QQQ vs UTHY

QQQ vs UTHY
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Quick Verdict

UTHY has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: UTHYHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricQQQUTHYWinner
Expense Ratio0.18%0.15%
AUM$496.3B$183M
Dividend Yield0.44%5.26%
Holdings1082
YTD Return+16.23%-2.85%
1Y Return+26.23%-0.84%
3Y Return (annualized)+25.75%+0.32%
5Y Return (annualized)+14.78%-
Volatility (annualized)30.6%13.1%
Max Drawdown-83.0%-21.9%
Fund FamilyInvesco (US)US Benchmark Series
CategoryEquityFixed Income
InceptionMar 10, 1999Mar 27, 2023

QQQ vs UTHY Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and F/m US Treasury 30 Year Bond ETF (UTHY) is a ETF from US Benchmark Series. Over the past year QQQ returned +26.23% while UTHY returned -0.84%. Year to date, QQQ is up 16.23% versus a loss of 2.85% for UTHY.

Over three years, QQQ compounded at +25.75% per year against +0.32% for UTHY. Across the full 3-year window we track, QQQ has the edge at +13.02% annualized vs -2.84%. 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 13.1% for UTHY. 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 -21.9% for UTHY. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while UTHY 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 5.26% for UTHY.

Frequently Asked Questions

Which is cheaper, QQQ or UTHY?

QQQ has an expense ratio of 0.18% while UTHY charges 0.15%. UTHY is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, QQQ or UTHY?

Over the past year QQQ returned +26.23% vs -0.84% for UTHY, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), QQQ annualized +13.02% vs -2.84% for UTHY. Past performance does not guarantee future results.

Which is riskier, QQQ or UTHY?

QQQ has been the more volatile fund at 30.6% annualized versus 13.1% for UTHY. Worst drawdown: QQQ -83.0% vs UTHY -21.9%.

Should I hold both QQQ and UTHY?

QQQ and UTHY have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, QQQ or UTHY?

QQQ yields 0.44% while UTHY yields 5.26%, so UTHY currently pays the higher dividend yield.

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