GTO vs QQQ
GTO vs QQQ
Invesco Total Return Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. GTO offers more diversification with 1255 holdings.
Side-by-Side Comparison
| Metric | GTO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $2.4B | $455.8B | |
| Dividend Yield | 4.80% | 0.41% | |
| Holdings | 1,621 | 108 | |
| YTD Return | -0.01% | +14.45% | |
| 1Y Return | +2.90% | +24.70% | |
| 3Y Return (annualized) | +4.70% | +24.19% | |
| 5Y Return (annualized) | -0.43% | +14.49% | |
| Volatility (annualized) | 5.7% | 30.6% | |
| Max Drawdown | -21.1% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 10, 2016 | Mar 10, 1999 |
GTO vs QQQ Performance
Invesco Total Return Bond ETF (GTO) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GTO returned +2.90% while QQQ returned +24.70%. Year to date, GTO is down 0.01% versus a gain of 14.45% for QQQ.
Over three years, GTO compounded at +4.70% per year against +24.19% for QQQ; over five years the annualized figures are -0.43% and +14.49% respectively. Across the full 11-year window we track, QQQ has the edge at +12.98% annualized vs +1.24%. 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 5.7% for GTO. 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 -21.1% for GTO 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GTO charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, GTO currently yields 4.80% against 0.41% for QQQ.
Holdings Overlap
GTO and QQQ share 0 holdings out of 1358 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, GTO or QQQ?
GTO has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, GTO or QQQ?
Over the past year GTO returned +2.90% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), GTO annualized +1.24% vs +12.98% for QQQ. Past performance does not guarantee future results.
Which is riskier, GTO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.7% for GTO. Worst drawdown: GTO -21.1% vs QQQ -83.0%.
Should I hold both GTO and QQQ?
GTO and QQQ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GTO and QQQ?
GTO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1358 unique securities.
Which pays a higher dividend, GTO or QQQ?
GTO yields 4.80% while QQQ yields 0.41%, so GTO currently pays the higher dividend yield.
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