HYS vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HYS offers more diversification with 657 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: HYS

Side-by-Side Comparison

MetricHYSQQQWinner
Expense Ratio0.56%0.18%
AUM$1.7B$455.8B
Dividend Yield7.31%0.41%
Holdings826108
YTD Return+1.07%+14.45%
1Y Return+4.48%+24.70%
3Y Return (annualized)+8.10%+24.19%
5Y Return (annualized)+5.01%+14.49%
Volatility (annualized)6.1%30.6%
Max Drawdown-26.6%-83.0%
Fund FamilyPIMCO (US)Invesco (US)
CategoryFixed IncomeEquity
InceptionJun 16, 2011Mar 10, 1999

HYS vs QQQ Performance

PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund (HYS) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HYS returned +4.48% while QQQ returned +24.70%. Year to date, HYS is up 1.07% versus a gain of 14.45% for QQQ.

Over three years, HYS compounded at +8.10% per year against +24.19% for QQQ; over five years the annualized figures are +5.01% and +14.49% respectively. Across the full 15-year window we track, QQQ has the edge at +12.98% annualized vs +1.69%. 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 6.1% for HYS. 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 -26.6% for HYS 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HYS charges 0.56% per year while QQQ charges 0.18%. On a $10,000 position that is $56 vs $18 annually, a gap of $38 per year that compounds over a long holding period. On income, HYS currently yields 7.31% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

HYS and QQQ share 0 holdings out of 760 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, HYS or QQQ?

HYS has an expense ratio of 0.56% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $38 per year of difference.

Which performed better, HYS or QQQ?

Over the past year HYS returned +4.48% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), HYS annualized +1.69% vs +12.98% for QQQ. Past performance does not guarantee future results.

Which is riskier, HYS or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 6.1% for HYS. Worst drawdown: HYS -26.6% vs QQQ -83.0%.

Should I hold both HYS and QQQ?

HYS and QQQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HYS and QQQ?

HYS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 760 unique securities.

Which pays a higher dividend, HYS or QQQ?

HYS yields 7.31% while QQQ yields 0.41%, so HYS currently pays the higher dividend yield.

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