QQQ vs UTWO
Invesco QQQ Trust, Series 1 vs F/m US Treasury 2 Year Note ETF
Quick Verdict
UTWO has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | UTWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $496.3B | $490M | |
| Dividend Yield | 0.44% | 3.84% | |
| Holdings | 108 | 2 | |
| YTD Return | +16.64% | +0.91% | |
| 1Y Return | +27.27% | +2.71% | |
| 3Y Return (annualized) | +25.96% | +4.07% | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 1.9% | |
| Max Drawdown | -83.0% | -2.0% | |
| Fund Family | Invesco (US) | US Benchmark Series | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Aug 8, 2022 |
QQQ vs UTWO Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and F/m US Treasury 2 Year Note ETF (UTWO) is a ETF from US Benchmark Series. Over the past year QQQ returned +27.27% while UTWO returned +2.71%. Year to date, QQQ is up 16.64% versus a gain of 0.91% for UTWO.
Over three years, QQQ compounded at +25.96% per year against +4.07% for UTWO. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +2.97%. 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 1.9% for UTWO. 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 -2.0% for UTWO. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while UTWO 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 3.84% for UTWO.
Holdings Overlap
QQQ and UTWO share 0 holdings out of 103 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 UTWO?
QQQ has an expense ratio of 0.18% while UTWO charges 0.15%. UTWO is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or UTWO?
Over the past year QQQ returned +27.27% vs +2.71% for UTWO, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.03% vs +2.97% for UTWO. Past performance does not guarantee future results.
Which is riskier, QQQ or UTWO?
QQQ has been the more volatile fund at 30.6% annualized versus 1.9% for UTWO. Worst drawdown: QQQ -83.0% vs UTWO -2.0%.
Should I hold both QQQ and UTWO?
QQQ and UTWO have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and UTWO?
QQQ and UTWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, QQQ or UTWO?
QQQ yields 0.44% while UTWO yields 3.84%, so UTWO currently pays the higher dividend yield.
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