QQQ vs TMB
QQQ vs TMB
Invesco QQQ Trust, Series 1 vs Thornburg Multi Sector Bond ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. TMB offers more diversification with 255 holdings.
Side-by-Side Comparison
| Metric | QQQ | TMB | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.55% | |
| AUM | $455.8B | $238M | |
| Dividend Yield | 0.41% | 4.60% | |
| Holdings | 108 | 403 | |
| YTD Return | +18.34% | +1.01% | |
| 1Y Return | +28.94% | +3.28% | |
| 3Y Return (annualized) | +25.28% | - | |
| 5Y Return (annualized) | +15.22% | - | |
| Volatility (annualized) | 30.6% | 2.0% | |
| Max Drawdown | -83.0% | -2.0% | |
| Fund Family | Invesco (US) | Thornburg Investment Management | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 5, 2025 |
QQQ vs TMB Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Thornburg Multi Sector Bond ETF (TMB) is a ETF from Thornburg Investment Management. Over the past year QQQ returned +28.94% while TMB returned +3.28%. Year to date, QQQ is up 18.34% versus a gain of 1.01% for TMB.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 2.0% for TMB. 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 -2.0% for TMB. 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TMB charges 0.55%. On a $10,000 position that is $18 vs $55 annually, a gap of $37 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 4.60% for TMB.
Holdings Overlap
QQQ and TMB share 0 holdings out of 358 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 TMB?
QQQ has an expense ratio of 0.18% while TMB charges 0.55%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, QQQ or TMB?
Over the past year QQQ returned +28.94% vs +3.28% for TMB, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), QQQ annualized +13.12% vs +5.11% for TMB. Past performance does not guarantee future results.
Which is riskier, QQQ or TMB?
QQQ has been the more volatile fund at 30.6% annualized versus 2.0% for TMB. Worst drawdown: QQQ -83.0% vs TMB -2.0%.
Should I hold both QQQ and TMB?
QQQ and TMB have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TMB?
QQQ and TMB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 358 unique securities.
Which pays a higher dividend, QQQ or TMB?
QQQ yields 0.41% while TMB yields 4.60%, so TMB currently pays the higher dividend yield.
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