FHYS vs QQQ
FHYS vs QQQ
Federated Hermes Short Duration High Yield ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FHYS offers more diversification with 205 holdings.
Side-by-Side Comparison
| Metric | FHYS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $54M | $455.8B | |
| Dividend Yield | 5.82% | 0.41% | |
| Holdings | 252 | 108 | |
| YTD Return | +2.19% | +18.34% | |
| 1Y Return | +5.26% | +28.94% | |
| 3Y Return (annualized) | +7.36% | +25.28% | |
| 5Y Return (annualized) | - | +15.22% | |
| Volatility (annualized) | 4.6% | 30.6% | |
| Max Drawdown | -11.6% | -83.0% | |
| Fund Family | Federated Hermes | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 16, 2021 | Mar 10, 1999 |
FHYS vs QQQ Performance
Federated Hermes Short Duration High Yield ETF (FHYS) is a ETF from Federated Hermes and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FHYS returned +5.26% while QQQ returned +28.94%. Year to date, FHYS is up 2.19% versus a gain of 18.34% for QQQ.
Over three years, FHYS compounded at +7.36% per year against +25.28% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.12% annualized vs +4.50%. 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 4.6% for FHYS. 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 -11.6% for FHYS 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FHYS charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, FHYS currently yields 5.82% against 0.41% for QQQ.
Holdings Overlap
FHYS and QQQ share 0 holdings out of 308 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, FHYS or QQQ?
FHYS has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, FHYS or QQQ?
Over the past year FHYS returned +5.26% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), FHYS annualized +4.50% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, FHYS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.6% for FHYS. Worst drawdown: FHYS -11.6% vs QQQ -83.0%.
Should I hold both FHYS and QQQ?
FHYS and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FHYS and QQQ?
FHYS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 308 unique securities.
Which pays a higher dividend, FHYS or QQQ?
FHYS yields 5.82% while QQQ yields 0.41%, so FHYS currently pays the higher dividend yield.
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