QQQ vs SHM
Invesco QQQ Trust, Series 1 vs State Street SPDR Nuveen ICE Short Term Municipal Bond ETF
Which is better, QQQ or SHM?
Large Cap Growth against Municipal Bond.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | QQQ | SHM |
|---|---|---|
| Expense Ratio | 0.18%Best | 0.20% |
| AUM | $506.1B | $3.5B |
| Dividend Yield | 0.42% | 2.75% |
| Holdings | 321 | 1,103 |
| YTD Return | +19.30%Best | -0.45% |
| 1Y Return | +22.47%Best | +0.11% |
| 3Y Return (annualized) | +26.18%Best | +2.66% |
| 5Y Return (annualized) | +15.42%Best | +0.66% |
| Volatility (annualized) | 19.0% | 2.6%Best |
| Max Drawdown | -53.5% | -11.6%Best |
| $10,000 over 5 years | $20,484Best | $10,334 |
| Fund Family | Invesco (US) | State Street Investment Management |
| Category | Equity | Tax Preferred |
| Style | Large Cap Growth | Municipal Bond |
| Inception | Mar 10, 1999 | Oct 10, 2007 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2007 to Oct 14, 2026 (19 years).
QQQ vs SHM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
QQQ vs SHM Performance
Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US) and State Street SPDR Nuveen ICE Short Term Municipal Bond ETF (SHM) is an ETF from State Street Investment Management. Over the past year QQQ returned +22.47% while SHM returned +0.11%. Year to date, QQQ is up 19.30% versus a loss of 0.45% for SHM.
Over three years, QQQ compounded at +26.18% per year against +2.66% for SHM; over five years the annualized figures are +15.42% and +0.66% respectively. Across the full 19-year window we track, QQQ has the edge at +14.98% annualized vs +0.70%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.0% compared with 2.6% for SHM. 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 -53.5% for QQQ and -11.6% for SHM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.23. They move largely independently of each other.
Fees and Cost Over Time
QQQ charges 0.18% per year while SHM charges 0.20%. On a $10,000 position that is $18 vs $20 annually, a gap of $2 per year that compounds over a long holding period. On income, QQQ currently yields 0.42% against 2.75% for SHM.
Holdings Overlap
We hold position weights for 101 holdings in QQQ and 483 in SHM, totalling 99.6% and 46.6% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 101 positions we hold weights for in QQQ and 483 in SHM, against full books of 321 and 1,103.
You are not choosing between two funds in isolation.
Whichever of QQQ and SHM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, QQQ or SHM?
QQQ has an expense ratio of 0.18% while SHM charges 0.20%. QQQ is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, QQQ or SHM?
Over the past year QQQ returned +22.47% vs +0.11% for SHM, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), QQQ annualized +14.98% vs +0.70% for SHM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, QQQ or SHM?
QQQ has been the more volatile fund at 19.0% annualized versus 2.6% for SHM. Worst drawdown: QQQ -53.5% vs SHM -11.6%.
Should I hold both QQQ and SHM?
QQQ and SHM have a monthly-return correlation of 0.23, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, QQQ or SHM?
QQQ yields 0.42% while SHM yields 2.75%, so SHM currently pays the higher dividend yield.
Is SHM better than QQQ?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.