QQQ vs XHYE
Invesco QQQ Trust, Series 1 vs BondBloxx USD High Yield Bond Energy Sector ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. XHYE offers more diversification with 211 holdings.
Side-by-Side Comparison
| Metric | QQQ | XHYE | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $6M | |
| Dividend Yield | 0.44% | 6.41% | |
| Holdings | 108 | 211 | |
| YTD Return | +16.64% | +3.65% | |
| 1Y Return | +27.27% | +10.84% | |
| 3Y Return (annualized) | +25.96% | +8.71% | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 7.2% | |
| Max Drawdown | -83.0% | -8.9% | |
| Fund Family | Invesco (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 15, 2022 |
QQQ vs XHYE Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and BondBloxx USD High Yield Bond Energy Sector ETF (XHYE) is a ETF from BondBloxx. Over the past year QQQ returned +27.27% while XHYE returned +10.84%. Year to date, QQQ is up 16.64% versus a gain of 3.65% for XHYE.
Over three years, QQQ compounded at +25.96% per year against +8.71% for XHYE. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +6.40%. 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 7.2% for XHYE. 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 -8.9% for XHYE. 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while XHYE 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 6.41% for XHYE.
Holdings Overlap
QQQ and XHYE share 0 holdings out of 281 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 XHYE?
QQQ has an expense ratio of 0.18% while XHYE 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 XHYE?
Over the past year QQQ returned +27.27% vs +10.84% for XHYE, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.03% vs +6.40% for XHYE. Past performance does not guarantee future results.
Which is riskier, QQQ or XHYE?
QQQ has been the more volatile fund at 30.6% annualized versus 7.2% for XHYE. Worst drawdown: QQQ -83.0% vs XHYE -8.9%.
Should I hold both QQQ and XHYE?
QQQ and XHYE have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XHYE?
QQQ and XHYE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 281 unique securities.
Which pays a higher dividend, QQQ or XHYE?
QQQ yields 0.44% while XHYE yields 6.41%, so XHYE currently pays the higher dividend yield.
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