GSST vs QQQ
GSST vs QQQ
Goldman Sachs Ultra Short Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
GSST has a lower expense ratio. QQQ delivered stronger 1-year returns. GSST offers more diversification with 229 holdings.
Side-by-Side Comparison
| Metric | GSST | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.16% | 0.18% | |
| AUM | $1.6B | $455.8B | |
| Dividend Yield | 4.31% | 0.41% | |
| Holdings | 413 | 108 | |
| YTD Return | -0.12% | +18.20% | |
| 1Y Return | +1.42% | +27.63% | |
| 3Y Return (annualized) | +4.43% | +25.54% | |
| 5Y Return (annualized) | +3.33% | +15.12% | |
| Volatility (annualized) | 1.4% | 30.6% | |
| Max Drawdown | -3.5% | -83.0% | |
| Fund Family | Goldman Sachs Asset Management | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 15, 2019 | Mar 10, 1999 |
GSST vs QQQ Performance
Goldman Sachs Ultra Short Bond ETF (GSST) 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 GSST returned +1.42% while QQQ returned +27.63%. Year to date, GSST is down 0.12% versus a gain of 18.20% for QQQ.
Over three years, GSST compounded at +4.43% per year against +25.54% for QQQ; over five years the annualized figures are +3.33% and +15.12% respectively. Across the full 7-year window we track, QQQ has the edge at +13.11% annualized vs +2.90%. 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 1.4% for GSST. 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 -3.5% for GSST 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GSST charges 0.16% per year while QQQ charges 0.18%. On a $10,000 position that is $16 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, GSST currently yields 4.31% against 0.41% for QQQ.
Holdings Overlap
GSST and QQQ share 0 holdings out of 332 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, GSST or QQQ?
GSST has an expense ratio of 0.16% while QQQ charges 0.18%. GSST is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, GSST or QQQ?
Over the past year GSST returned +1.42% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), GSST annualized +2.90% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, GSST or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 1.4% for GSST. Worst drawdown: GSST -3.5% vs QQQ -83.0%.
Should I hold both GSST and QQQ?
GSST and QQQ have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GSST and QQQ?
GSST and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 332 unique securities.
Which pays a higher dividend, GSST or QQQ?
GSST yields 4.31% while QQQ yields 0.41%, so GSST currently pays the higher dividend yield.
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