QQQ vs XHYT

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. XHYT offers more diversification with 262 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: XHYT

Side-by-Side Comparison

MetricQQQXHYTWinner
Expense Ratio0.18%0.35%
AUM$455.8B$12M
Dividend Yield0.41%7.83%
Holdings108293
YTD Return+16.83%-0.08%
1Y Return+26.58%+5.32%
3Y Return (annualized)+24.70%+8.71%
5Y Return (annualized)+14.88%-
Volatility (annualized)30.6%8.8%
Max Drawdown-83.0%-13.5%
Fund FamilyInvesco (US)BondBloxx
CategoryEquityFixed Income
InceptionMar 10, 1999Feb 15, 2022

QQQ vs XHYT Performance

Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and BondBloxx USD High Yield Bond Telecom, Media & Technology Sector ETF (XHYT) is a ETF from BondBloxx. Over the past year QQQ returned +26.58% while XHYT returned +5.32%. Year to date, QQQ is up 16.83% versus a loss of 0.08% for XHYT.

Over three years, QQQ compounded at +24.70% per year against +8.71% for XHYT. Across the full 4-year window we track, QQQ has the edge at +13.06% annualized vs +3.71%. 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 8.8% for XHYT. 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 -13.5% for XHYT. 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

QQQ charges 0.18% per year while XHYT 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 7.83% for XHYT.

Holdings Overlap

0.0%overlap

QQQ and XHYT share 0 holdings out of 365 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 XHYT?

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

Over the past year QQQ returned +26.58% vs +5.32% for XHYT, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.06% vs +3.71% for XHYT. Past performance does not guarantee future results.

Which is riskier, QQQ or XHYT?

QQQ has been the more volatile fund at 30.6% annualized versus 8.8% for XHYT. Worst drawdown: QQQ -83.0% vs XHYT -13.5%.

Should I hold both QQQ and XHYT?

QQQ and XHYT have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between QQQ and XHYT?

QQQ and XHYT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 365 unique securities.

Which pays a higher dividend, QQQ or XHYT?

QQQ yields 0.41% while XHYT yields 7.83%, so XHYT currently pays the higher dividend yield.

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