CMBS vs QQQ
CMBS vs QQQ
iShares CMBS ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. CMBS offers more diversification with 444 holdings.
Side-by-Side Comparison
| Metric | CMBS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $473M | $455.8B | |
| Dividend Yield | 3.57% | 0.41% | |
| Holdings | 467 | 108 | |
| YTD Return | -0.32% | +14.45% | |
| 1Y Return | +1.88% | +24.70% | |
| 3Y Return (annualized) | +5.17% | +24.19% | |
| 5Y Return (annualized) | +0.45% | +14.49% | |
| Volatility (annualized) | 3.9% | 30.6% | |
| Max Drawdown | -16.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 14, 2012 | Mar 10, 1999 |
CMBS vs QQQ Performance
iShares CMBS ETF (CMBS) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CMBS returned +1.88% while QQQ returned +24.70%. Year to date, CMBS is down 0.32% versus a gain of 14.45% for QQQ.
Over three years, CMBS compounded at +5.17% per year against +24.19% for QQQ; over five years the annualized figures are +0.45% and +14.49% respectively. Across the full 15-year window we track, QQQ has the edge at +12.98% annualized vs +0.80%. 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 3.9% for CMBS. 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 -16.4% for CMBS and -83.0% for QQQ. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CMBS charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, CMBS currently yields 3.57% against 0.41% for QQQ.
Holdings Overlap
CMBS and QQQ share 0 holdings out of 547 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, CMBS or QQQ?
CMBS has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, CMBS or QQQ?
Over the past year CMBS returned +1.88% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), CMBS annualized +0.80% vs +12.98% for QQQ. Past performance does not guarantee future results.
Which is riskier, CMBS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.9% for CMBS. Worst drawdown: CMBS -16.4% vs QQQ -83.0%.
Should I hold both CMBS and QQQ?
CMBS and QQQ have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CMBS and QQQ?
CMBS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 547 unique securities.
Which pays a higher dividend, CMBS or QQQ?
CMBS yields 3.57% while QQQ yields 0.41%, so CMBS currently pays the higher dividend yield.
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