QQQ vs XHYF
Invesco QQQ Trust, Series 1 vs BondBloxx USD High Yield Bond Financial & REIT Sector ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. XHYF offers more diversification with 272 holdings.
Side-by-Side Comparison
| Metric | QQQ | XHYF | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.35% | |
| AUM | $496.3B | $7M | |
| Dividend Yield | 0.44% | 6.77% | |
| Holdings | 108 | 272 | |
| YTD Return | +16.64% | +0.00% | |
| 1Y Return | +27.27% | +5.99% | |
| 3Y Return (annualized) | +25.96% | +9.25% | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 7.9% | |
| Max Drawdown | -83.0% | -12.9% | |
| Fund Family | Invesco (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 15, 2022 |
QQQ vs XHYF Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and BondBloxx USD High Yield Bond Financial & REIT Sector ETF (XHYF) is a ETF from BondBloxx. Over the past year QQQ returned +27.27% while XHYF returned +5.99%. Year to date, QQQ is up 16.64% versus a gain of 0.00% for XHYF.
Over three years, QQQ compounded at +25.96% per year against +9.25% for XHYF. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +5.06%. 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 7.9% for XHYF. 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 -12.9% for XHYF. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QQQ charges 0.18% per year while XHYF 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 6.77% for XHYF.
Holdings Overlap
QQQ and XHYF share 0 holdings out of 328 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 XHYF?
QQQ has an expense ratio of 0.18% while XHYF 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 XHYF?
Over the past year QQQ returned +27.27% vs +5.99% for XHYF, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.03% vs +5.06% for XHYF. Past performance does not guarantee future results.
Which is riskier, QQQ or XHYF?
QQQ has been the more volatile fund at 30.6% annualized versus 7.9% for XHYF. Worst drawdown: QQQ -83.0% vs XHYF -12.9%.
Should I hold both QQQ and XHYF?
QQQ and XHYF have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XHYF?
QQQ and XHYF share 0 common holdings with a 0.0% weight overlap. Combined, they hold 328 unique securities.
Which pays a higher dividend, QQQ or XHYF?
QQQ yields 0.44% while XHYF yields 6.77%, so XHYF currently pays the higher dividend yield.
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