GBND vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. GBND offers more diversification with 323 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: GBND

Side-by-Side Comparison

MetricGBNDQQQWinner
Expense Ratio0.25%0.18%
AUM$523M$455.8B
Dividend Yield3.43%0.41%
Holdings485108
YTD Return-0.35%+18.20%
1Y Return+2.13%+27.63%
3Y Return (annualized)-+25.54%
5Y Return (annualized)-+15.12%
Volatility (annualized)3.2%30.6%
Max Drawdown-2.8%-83.0%
Fund FamilyGoldman Sachs Asset ManagementInvesco (US)
CategoryFixed IncomeEquity
InceptionJun 24, 2025Mar 10, 1999

GBND vs QQQ Performance

Goldman Sachs Core Bond ETF (GBND) is a ETF from Goldman Sachs Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GBND returned +2.13% while QQQ returned +27.63%. Year to date, GBND is down 0.35% versus a gain of 18.20% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.2% for GBND. 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 -2.8% for GBND 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GBND 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, GBND currently yields 3.43% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

GBND and QQQ share 0 holdings out of 426 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, GBND or QQQ?

GBND 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, GBND or QQQ?

Over the past year GBND returned +2.13% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), GBND annualized +2.71% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, GBND or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 3.2% for GBND. Worst drawdown: GBND -2.8% vs QQQ -83.0%.

Should I hold both GBND and QQQ?

GBND and QQQ have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GBND and QQQ?

GBND and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 426 unique securities.

Which pays a higher dividend, GBND or QQQ?

GBND yields 3.43% while QQQ yields 0.41%, so GBND currently pays the higher dividend yield.

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