QQQ vs. HYG: What's The Difference?
QQQ vs. HYG: What’s The Difference?
The Invesco QQQ Trust (QQQ) and the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) are both among the Top 100 ETFs. QQQ is a Invesco Large Growth fund and HYG is a iShares High Yield Bond fund. So, what’s the difference between QQQ and HYG? And which fund is better?
The expense ratio of QQQ is 0.28 percentage points lower than HYG’s (0.2% vs. 0.48%). QQQ also has a high exposure to the technology sector while HYG is mostly comprised of BB bonds. Overall, QQQ has provided higher returns than HYG over the past ten years.
In this article, we’ll compare QQQ vs. HYG. We’ll look at portfolio growth and risk metrics, as well as at their industry exposure and holdings. Moreover, I’ll also discuss QQQ’s and HYG’s performance, annual returns, and fund composition and examine how these affect their overall returns.
QQQ HYG
Name Invesco QQQ Trust iShares iBoxx $ High Yield Corporate Bond ETF
QQQ’s dividend yield is 3.95% lower than that of HYG (0.49% vs. 4.44%). Also, QQQ yielded on average 14.85% more per year over the past decade (21.27% vs. 6.42%). The expense ratio of QQQ is 0.28 percentage points lower than HYG’s (0.2% vs. 0.48%).
Year QQQ HYG
QQQ’s CAGR is 14.85 percentage points higher than that of HYG and as a result, would have yielded $57,095 more on a $10,000 investment. Thus, QQQ outperformed HYG by 14.85% annually.