QQQ vs XHYC

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. XHYC offers more diversification with 243 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: XHYC

Side-by-Side Comparison

MetricQQQXHYCWinner
Expense Ratio0.18%0.35%
AUM$455.8B$3M
Dividend Yield0.41%6.57%
Holdings108271
YTD Return+12.48%+0.72%
1Y Return+22.35%+6.77%
3Y Return (annualized)+22.30%+8.33%
5Y Return (annualized)+14.24%-
Volatility (annualized)30.6%8.0%
Max Drawdown-83.0%-13.7%
Fund FamilyInvesco (US)BondBloxx
CategoryEquityFixed Income
InceptionMar 10, 1999Feb 15, 2022

QQQ vs XHYC Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and BondBloxx USD High Yield Bond Consumer Cyclicals Sector ETF (XHYC) is a ETF from BondBloxx. Over the past year QQQ returned +22.35% while XHYC returned +6.77%. Year to date, QQQ is up 12.48% versus a gain of 0.72% for XHYC.

Over three years, QQQ compounded at +22.30% per year against +8.33% for XHYC. Across the full 4-year window we track, QQQ has the edge at +12.91% annualized vs +4.77%. 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 8.0% for XHYC. 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 -13.7% for XHYC. 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while XHYC charges 0.35%. On a $10,000 position that is $18 vs $35 annually, a gap of $17 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 6.57% for XHYC.

Holdings Overlap

0.0%overlap

QQQ and XHYC share 0 holdings out of 346 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 XHYC?

QQQ has an expense ratio of 0.18% while XHYC charges 0.35%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.

Which performed better, QQQ or XHYC?

Over the past year QQQ returned +22.35% vs +6.77% for XHYC, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +12.91% vs +4.77% for XHYC. Past performance does not guarantee future results.

Which is riskier, QQQ or XHYC?

QQQ has been the more volatile fund at 30.6% annualized versus 8.0% for XHYC. Worst drawdown: QQQ -83.0% vs XHYC -13.7%.

Should I hold both QQQ and XHYC?

QQQ and XHYC have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and XHYC?

QQQ and XHYC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 346 unique securities.

Which pays a higher dividend, QQQ or XHYC?

QQQ yields 0.41% while XHYC yields 6.57%, so XHYC currently pays the higher dividend yield.

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