QQQ vs VKQ
Invesco QQQ Trust, Series 1 vs Invesco Municipal Trust
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. VKQ offers more diversification with 537 holdings.
Side-by-Side Comparison
| Metric | QQQ | VKQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 1.77% | |
| AUM | $496.3B | $2,913.25 | |
| Dividend Yield | 0.44% | 7.67% | |
| Holdings | 108 | 537 | |
| YTD Return | +16.64% | +4.58% | |
| 1Y Return | +27.27% | +15.43% | |
| 3Y Return (annualized) | +25.96% | +9.52% | |
| 5Y Return (annualized) | +14.54% | -1.20% | |
| Volatility (annualized) | 30.6% | 13.9% | |
| Max Drawdown | -83.0% | -58.5% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Sep 27, 1991 |
QQQ vs VKQ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Invesco Municipal Trust (VKQ) is a ETF from Invesco (US). Over the past year QQQ returned +27.27% while VKQ returned +15.43%. Year to date, QQQ is up 16.64% versus a gain of 4.58% for VKQ.
Over three years, QQQ compounded at +25.96% per year against +9.52% for VKQ; over five years the annualized figures are +14.54% and -1.20% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs -0.18%. 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 13.9% for VKQ. 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 -58.5% for VKQ. 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 0.14. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while VKQ charges 1.77%. On a $10,000 position that is $18 vs $177 annually, a gap of $159 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 7.67% for VKQ.
Holdings Overlap
QQQ and VKQ share 0 holdings out of 378 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 VKQ?
QQQ has an expense ratio of 0.18% while VKQ charges 1.77%. QQQ is the cheaper option. On a $10,000 investment, that is $159 per year of difference.
Which performed better, QQQ or VKQ?
Over the past year QQQ returned +27.27% vs +15.43% for VKQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.03% vs -0.18% for VKQ. Past performance does not guarantee future results.
Which is riskier, QQQ or VKQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.9% for VKQ. Worst drawdown: QQQ -83.0% vs VKQ -58.5%.
Should I hold both QQQ and VKQ?
QQQ and VKQ have a monthly-return correlation of 0.14, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and VKQ?
QQQ and VKQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 378 unique securities.
Which pays a higher dividend, QQQ or VKQ?
QQQ yields 0.44% while VKQ yields 7.67%, so VKQ currently pays the higher dividend yield.
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