QQQ vs YEAR
Invesco QQQ Trust, Series 1 vs AB Ultra Short Income ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | YEAR | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.25% | |
| AUM | $455.8B | $1.5B | |
| Dividend Yield | 0.41% | 4.26% | |
| Holdings | 108 | 169 | |
| YTD Return | +19.68% | +1.53% | |
| 1Y Return | +26.75% | +3.36% | |
| 3Y Return (annualized) | +26.25% | +4.85% | |
| 5Y Return (annualized) | +15.39% | - | |
| Volatility (annualized) | 30.6% | 0.9% | |
| Max Drawdown | -83.0% | -0.6% | |
| Fund Family | Invesco (US) | AllianceBernstein L.P. | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Sep 13, 2022 |
QQQ vs YEAR Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and AB Ultra Short Income ETF (YEAR) is a ETF from AllianceBernstein L.P.. Over the past year QQQ returned +26.75% while YEAR returned +3.36%. Year to date, QQQ is up 19.68% versus a gain of 1.53% for YEAR.
Over three years, QQQ compounded at +26.25% per year against +4.85% for YEAR. Across the full 4-year window we track, QQQ has the edge at +13.15% annualized vs +4.83%. 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 0.9% for YEAR. 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 -0.6% for YEAR. 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 0.10. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while YEAR charges 0.25%. On a $10,000 position that is $18 vs $25 annually, a gap of $7 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.26% for YEAR.
Holdings Overlap
QQQ and YEAR share 0 holdings out of 202 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 YEAR?
QQQ has an expense ratio of 0.18% while YEAR charges 0.25%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, QQQ or YEAR?
Over the past year QQQ returned +26.75% vs +3.36% for YEAR, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.15% vs +4.83% for YEAR. Past performance does not guarantee future results.
Which is riskier, QQQ or YEAR?
QQQ has been the more volatile fund at 30.6% annualized versus 0.9% for YEAR. Worst drawdown: QQQ -83.0% vs YEAR -0.6%.
Should I hold both QQQ and YEAR?
QQQ and YEAR have a monthly-return correlation of 0.10, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and YEAR?
QQQ and YEAR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 202 unique securities.
Which pays a higher dividend, QQQ or YEAR?
QQQ yields 0.41% while YEAR yields 4.26%, so YEAR currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.