QQQ vs XHYI

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. XHYI offers more diversification with 435 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: XHYI

Side-by-Side Comparison

MetricQQQXHYIWinner
Expense Ratio0.18%0.35%
AUM$455.8B$8M
Dividend Yield0.41%6.51%
Holdings108496
YTD Return+18.20%+0.15%
1Y Return+27.63%+6.16%
3Y Return (annualized)+25.54%+7.78%
5Y Return (annualized)+15.12%-
Volatility (annualized)30.6%7.5%
Max Drawdown-83.0%-11.0%
Fund FamilyInvesco (US)BondBloxx
CategoryEquityFixed Income
InceptionMar 10, 1999Feb 15, 2022

QQQ vs XHYI Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and BondBloxx USD High Yield Bond Industrial Sector ETF (XHYI) is a ETF from BondBloxx. Over the past year QQQ returned +27.63% while XHYI returned +6.16%. Year to date, QQQ is up 18.20% versus a gain of 0.15% for XHYI.

Over three years, QQQ compounded at +25.54% per year against +7.78% for XHYI. Across the full 4-year window we track, QQQ has the edge at +13.11% annualized vs +5.18%. 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 7.5% for XHYI. 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 -11.0% for XHYI. 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 0.75. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while XHYI 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 6.51% for XHYI.

Holdings Overlap

0.0%overlap

QQQ and XHYI share 0 holdings out of 538 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 XHYI?

QQQ has an expense ratio of 0.18% while XHYI 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 XHYI?

Over the past year QQQ returned +27.63% vs +6.16% for XHYI, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.11% vs +5.18% for XHYI. Past performance does not guarantee future results.

Which is riskier, QQQ or XHYI?

QQQ has been the more volatile fund at 30.6% annualized versus 7.5% for XHYI. Worst drawdown: QQQ -83.0% vs XHYI -11.0%.

Should I hold both QQQ and XHYI?

QQQ and XHYI have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and XHYI?

QQQ and XHYI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 538 unique securities.

Which pays a higher dividend, QQQ or XHYI?

QQQ yields 0.41% while XHYI yields 6.51%, so XHYI currently pays the higher dividend yield.

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