HYDB vs QQQ
HYDB vs QQQ
iShares High Yield Systematic Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HYDB offers more diversification with 203 holdings.
Side-by-Side Comparison
| Metric | HYDB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $1.6B | $455.8B | |
| Dividend Yield | 6.99% | 0.41% | |
| Holdings | 265 | 108 | |
| YTD Return | -2.09% | +18.34% | |
| 1Y Return | +0.55% | +28.94% | |
| 3Y Return (annualized) | +7.02% | +25.28% | |
| 5Y Return (annualized) | +3.71% | +15.22% | |
| Volatility (annualized) | 7.7% | 30.6% | |
| Max Drawdown | -21.6% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 11, 2017 | Mar 10, 1999 |
HYDB vs QQQ Performance
iShares High Yield Systematic Bond ETF (HYDB) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HYDB returned +0.55% while QQQ returned +28.94%. Year to date, HYDB is down 2.09% versus a gain of 18.34% for QQQ.
Over three years, HYDB compounded at +7.02% per year against +25.28% for QQQ; over five years the annualized figures are +3.71% and +15.22% respectively. Across the full 9-year window we track, QQQ has the edge at +13.12% annualized vs +4.94%. 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 7.7% for HYDB. 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 -21.6% for HYDB 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 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYDB 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, HYDB currently yields 6.99% against 0.41% for QQQ.
Holdings Overlap
HYDB and QQQ share 0 holdings out of 306 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, HYDB or QQQ?
HYDB 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, HYDB or QQQ?
Over the past year HYDB returned +0.55% vs +28.94% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), HYDB annualized +4.94% vs +13.12% for QQQ. Past performance does not guarantee future results.
Which is riskier, HYDB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.7% for HYDB. Worst drawdown: HYDB -21.6% vs QQQ -83.0%.
Should I hold both HYDB and QQQ?
HYDB and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYDB and QQQ?
HYDB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 306 unique securities.
Which pays a higher dividend, HYDB or QQQ?
HYDB yields 6.99% while QQQ yields 0.41%, so HYDB currently pays the higher dividend yield.
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