QQQ vs XHYD

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. XHYD offers more diversification with 175 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: XHYD

Side-by-Side Comparison

MetricQQQXHYDWinner
Expense Ratio0.18%0.35%
AUM$496.3B$14M
Dividend Yield0.44%5.76%
Holdings108175
YTD Return+19.68%+0.24%
1Y Return+26.75%+5.87%
3Y Return (annualized)+26.25%+7.53%
5Y Return (annualized)+15.39%-
Volatility (annualized)30.6%7.4%
Max Drawdown-83.0%-11.0%
Fund FamilyInvesco (US)BondBloxx
CategoryEquityFixed Income
InceptionMar 10, 1999Feb 15, 2022

QQQ vs XHYD Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and BondBloxx USD High Yield Bond Consumer Non-Cyclicals Sector ETF (XHYD) is a ETF from BondBloxx. Over the past year QQQ returned +26.75% while XHYD returned +5.87%. Year to date, QQQ is up 19.68% versus a gain of 0.24% for XHYD.

Over three years, QQQ compounded at +26.25% per year against +7.53% for XHYD. Across the full 4-year window we track, QQQ has the edge at +13.15% annualized vs +4.75%. 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 7.4% for XHYD. 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 -11.0% for XHYD. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

QQQ charges 0.18% per year while XHYD charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 5.76% for XHYD.

Holdings Overlap

0.0%overlap

QQQ and XHYD share 0 holdings out of 254 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 XHYD?

QQQ has an expense ratio of 0.18% while XHYD charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, QQQ or XHYD?

Over the past year QQQ returned +26.75% vs +5.87% for XHYD, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.15% vs +4.75% for XHYD. Past performance does not guarantee future results.

Which is riskier, QQQ or XHYD?

QQQ has been the more volatile fund at 30.6% annualized versus 7.4% for XHYD. Worst drawdown: QQQ -83.0% vs XHYD -11.0%.

Should I hold both QQQ and XHYD?

QQQ and XHYD have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and XHYD?

QQQ and XHYD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 254 unique securities.

Which pays a higher dividend, QQQ or XHYD?

QQQ yields 0.44% while XHYD yields 5.76%, so XHYD currently pays the higher dividend yield.

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