QQQ vs SHM
QQQ vs SHM
Invesco QQQ Trust, Series 1 vs State Street SPDR Nuveen ICE Short Term Municipal Bond ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. SHM offers more diversification with 671 holdings.
Side-by-Side Comparison
| Metric | QQQ | SHM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.20% | |
| AUM | $455.8B | $3.5B | |
| Dividend Yield | 0.41% | 2.66% | |
| Holdings | 108 | 988 | |
| YTD Return | +12.48% | +0.50% | |
| 1Y Return | +22.35% | +1.88% | |
| 3Y Return (annualized) | +22.30% | +2.65% | |
| 5Y Return (annualized) | +14.24% | +0.76% | |
| Volatility (annualized) | 30.6% | 2.6% | |
| Max Drawdown | -83.0% | -11.6% | |
| Fund Family | Invesco (US) | State Street Investment Management | |
| Category | Equity | Tax Preferred | |
| Inception | Mar 10, 1999 | Oct 10, 2007 |
QQQ vs SHM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and State Street SPDR Nuveen ICE Short Term Municipal Bond ETF (SHM) is a ETF from State Street Investment Management. Over the past year QQQ returned +22.35% while SHM returned +1.88%. Year to date, QQQ is up 12.48% versus a gain of 0.50% for SHM.
Over three years, QQQ compounded at +22.30% per year against +2.65% for SHM; over five years the annualized figures are +14.24% and +0.76% respectively. Across the full 19-year window we track, QQQ has the edge at +12.91% annualized vs +0.75%. 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 2.6% for SHM. 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 -83.0% for QQQ and -11.6% for SHM. 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SHM charges 0.20%. On a $10,000 position that is $18 vs $20 annually, a gap of $2 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 2.66% for SHM.
Holdings Overlap
QQQ and SHM share 0 holdings out of 774 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, QQQ or SHM?
QQQ has an expense ratio of 0.18% while SHM charges 0.20%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, QQQ or SHM?
Over the past year QQQ returned +22.35% vs +1.88% for SHM, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), QQQ annualized +12.91% vs +0.75% for SHM. Past performance does not guarantee future results.
Which is riskier, QQQ or SHM?
QQQ has been the more volatile fund at 30.6% annualized versus 2.6% for SHM. Worst drawdown: QQQ -83.0% vs SHM -11.6%.
Should I hold both QQQ and SHM?
QQQ and SHM have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SHM?
QQQ and SHM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 774 unique securities.
Which pays a higher dividend, QQQ or SHM?
QQQ yields 0.41% while SHM yields 2.66%, so SHM currently pays the higher dividend yield.
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