HFSI vs QQQ
HFSI vs QQQ
Hartford Strategic Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HFSI offers more diversification with 362 holdings.
Side-by-Side Comparison
| Metric | HFSI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.18% | |
| AUM | $1.0B | $455.8B | |
| Dividend Yield | 5.25% | 0.41% | |
| Holdings | 1,019 | 108 | |
| YTD Return | -1.49% | +17.27% | |
| 1Y Return | +1.17% | +28.64% | |
| 3Y Return (annualized) | +6.81% | +24.88% | |
| 5Y Return (annualized) | - | +14.86% | |
| Volatility (annualized) | 6.7% | 30.6% | |
| Max Drawdown | -19.3% | -83.0% | |
| Fund Family | Hartford Funds | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 21, 2021 | Mar 10, 1999 |
HFSI vs QQQ Performance
Hartford Strategic Income ETF (HFSI) is a ETF from Hartford Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HFSI returned +1.17% while QQQ returned +28.64%. Year to date, HFSI is down 1.49% versus a gain of 17.27% for QQQ.
Over three years, HFSI compounded at +6.81% per year against +24.88% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.08% annualized vs +1.84%. 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 6.7% for HFSI. 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 -19.3% for HFSI 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HFSI charges 0.49% per year while QQQ charges 0.18%. On a $10,000 position that is $49 vs $18 annually, a gap of $31 per year that compounds over a long holding period. On income, HFSI currently yields 5.25% against 0.41% for QQQ.
Holdings Overlap
HFSI and QQQ share 1 holdings out of 464 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HFSI | Weight in QQQ | Difference |
|---|---|---|---|
| SHOP:CA | 0.00% | 0.67% | 0.67% |
Frequently Asked Questions
Which is cheaper, HFSI or QQQ?
HFSI has an expense ratio of 0.49% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, HFSI or QQQ?
Over the past year HFSI returned +1.17% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), HFSI annualized +1.84% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, HFSI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.7% for HFSI. Worst drawdown: HFSI -19.3% vs QQQ -83.0%.
Should I hold both HFSI and QQQ?
HFSI and QQQ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HFSI and QQQ?
HFSI and QQQ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 464 unique securities.
Which pays a higher dividend, HFSI or QQQ?
HFSI yields 5.25% while QQQ yields 0.41%, so HFSI currently pays the higher dividend yield.
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