QQQ vs TBUX
QQQ vs TBUX
Invesco QQQ Trust, Series 1 vs T Rowe Price Ultra Short-Term Bond ETF
Quick Verdict
TBUX has a lower expense ratio. QQQ delivered stronger 1-year returns. TBUX offers more diversification with 362 holdings.
Side-by-Side Comparison
| Metric | QQQ | TBUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.17% | |
| AUM | $455.8B | $1.3B | |
| Dividend Yield | 0.41% | 4.49% | |
| Holdings | 108 | 622 | |
| YTD Return | +14.45% | +2.36% | |
| 1Y Return | +24.70% | +4.45% | |
| 3Y Return (annualized) | +24.19% | +5.54% | |
| 5Y Return (annualized) | +14.49% | - | |
| Volatility (annualized) | 30.6% | 1.1% | |
| Max Drawdown | -83.0% | -1.8% | |
| Fund Family | Invesco (US) | T.Rowe Price | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Sep 28, 2021 |
QQQ vs TBUX Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and T Rowe Price Ultra Short-Term Bond ETF (TBUX) is a ETF from T.Rowe Price. Over the past year QQQ returned +24.70% while TBUX returned +4.45%. Year to date, QQQ is up 14.45% versus a gain of 2.36% for TBUX.
Over three years, QQQ compounded at +24.19% per year against +5.54% for TBUX. Across the full 5-year window we track, QQQ has the edge at +12.98% annualized vs +4.03%. 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 1.1% for TBUX. 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 -1.8% for TBUX. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TBUX charges 0.17%. On a $10,000 position that is $18 vs $17 annually, a gap of $1 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.49% for TBUX.
Holdings Overlap
QQQ and TBUX share 0 holdings out of 465 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 TBUX?
QQQ has an expense ratio of 0.18% while TBUX charges 0.17%. TBUX is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, QQQ or TBUX?
Over the past year QQQ returned +24.70% vs +4.45% for TBUX, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), QQQ annualized +12.98% vs +4.03% for TBUX. Past performance does not guarantee future results.
Which is riskier, QQQ or TBUX?
QQQ has been the more volatile fund at 30.6% annualized versus 1.1% for TBUX. Worst drawdown: QQQ -83.0% vs TBUX -1.8%.
Should I hold both QQQ and TBUX?
QQQ and TBUX have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TBUX?
QQQ and TBUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 465 unique securities.
Which pays a higher dividend, QQQ or TBUX?
QQQ yields 0.41% while TBUX yields 4.49%, so TBUX currently pays the higher dividend yield.
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