SHM vs. QQQ
SHM (SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - SHM is a Municipal Bonds fund tracking the Bloomberg Municipal Managed Money Short, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, SHM returned 1.20%/yr vs 21.94%/yr for QQQ. At a 0.01 correlation, their price movements are largely independent. SHM charges 0.20%/yr vs 0.18%/yr for QQQ.
Performance
SHM vs. QQQ - Performance Comparison
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Returns By Period
In the year-to-date period, SHM achieves a 0.78% return, which is significantly lower than QQQ's 21.30% return. Over the past 10 years, SHM has underperformed QQQ with an annualized return of 1.20%, while QQQ has yielded a comparatively higher 21.94% annualized return.
SHM
- 1D
- 0.04%
- 1M
- 0.39%
- YTD
- 0.78%
- 6M
- 1.08%
- 1Y
- 3.47%
- 3Y*
- 2.93%
- 5Y*
- 0.91%
- 10Y*
- 1.20%
QQQ
- 1D
- -0.26%
- 1M
- 10.60%
- YTD
- 21.30%
- 6M
- 19.66%
- 1Y
- 41.82%
- 3Y*
- 28.78%
- 5Y*
- 17.97%
- 10Y*
- 21.94%
SHM vs. QQQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SHM SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF | 0.78% | 3.95% | 1.22% | 2.92% | -3.82% | -0.37% | 2.65% | 3.64% | 1.56% | 0.99% |
QQQ Invesco QQQ ETF | 21.30% | 20.77% | 25.58% | 54.86% | -32.58% | 27.42% | 48.62% | 38.96% | -0.13% | 32.66% |
Correlation
The correlation between SHM and QQQ is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.14 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.06 |
Correlation (All Time) Calculated using the full available price history since Oct 19, 2007 | 0.01 |
Over the past year, SHM and QQQ have become more correlated (0.23) than their long-term average of 0.01, meaning their price movements have been converging.
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Return for Risk
SHM vs. QQQ — Risk / Return Rank
SHM
QQQ
SHM vs. QQQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF (SHM) and Invesco QQQ ETF (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| SHM | QQQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.12 | ||
| Sortino ratioReturn per unit of downside risk | +0.85 | ||
| Omega ratioGain probability vs. loss probability | 1.59 | 1.45 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 3.08 | 3.51 | -0.44 |
| Martin ratioReturn relative to average drawdown | 7.88 | 13.49 | -5.61 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| SHM | QQQ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.76 | 2.64 | +0.12 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.44 | 0.81 | -0.37 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.36 | 0.99 | -0.62 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.48 | 0.41 | +0.07 |
Drawdowns
SHM vs. QQQ - Drawdown Comparison
The maximum SHM drawdown since its inception was -11.61%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for SHM and QQQ.
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Drawdown Indicators
| SHM | QQQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -11.61% | -82.97% | +71.36% |
Max Drawdown (1Y)Largest decline over 1 year | -1.13% | -11.96% | +10.83% |
Max Drawdown (3Y)Largest decline over 3 years | -2.03% | -22.77% | +20.74% |
Max Drawdown (5Y)Largest decline over 5 years | -6.67% | -35.12% | +28.45% |
Max Drawdown (10Y)Largest decline over 10 years | -11.61% | -35.12% | +23.51% |
Current DrawdownCurrent decline from peak | -0.37% | -0.26% | -0.11% |
Average DrawdownAverage peak-to-trough decline | -0.97% | -32.79% | +31.82% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.44% | 3.11% | -2.67% |
Volatility
SHM vs. QQQ - Volatility Comparison
The current volatility for SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF (SHM) is 0.35%, while Invesco QQQ ETF (QQQ) has a volatility of 4.49%. This indicates that SHM experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SHM | QQQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.35% | 4.49% | -4.14% |
Volatility (6M)Calculated over the trailing 6-month period | 0.85% | 12.10% | -11.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 1.26% | 15.94% | -14.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.07% | 22.38% | -20.31% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 3.31% | 22.29% | -18.98% |
SHM vs. QQQ - Expense Ratio Comparison
SHM has a 0.20% expense ratio, which is higher than QQQ's 0.18% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
SHM vs. QQQ - Dividend Comparison
SHM's dividend yield for the trailing twelve months is around 2.67%, more than QQQ's 0.38% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QQQ Invesco QQQ ETF | 0.38% | 0.45% | 0.56% | 0.62% | 0.80% | 0.43% | 0.55% | 0.74% | 0.91% | 0.84% | 1.06% | 0.99% |
SHM SPDR Nuveen Bloomberg Barclays Short Term Municipal Bond ETF | 2.67% | 2.61% | 2.06% | 1.15% | 0.69% | 0.86% | 1.24% | 1.40% | 1.23% | 1.06% | 0.94% | 0.92% |
Frequently Asked Questions
SHM and QQQ have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
QQQ has higher volatility (4.49%) compared to SHM (0.35%). In terms of maximum drawdown, SHM dropped -11.61% vs QQQ's -82.97%.
On 10-year performance, QQQ leads with 21.94% vs 1.20% for SHM. On fees, QQQ is cheaper at 0.18% per year. On volatility, SHM has been the lower-risk option at 0.35%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, QQQ has performed better with a 21.94% return vs 1.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
QQQ is cheaper with a 0.18% expense ratio, compared with 0.20% for SHM.
SHM has the higher dividend yield at 2.67%, compared with 0.38% for QQQ.
SHM is categorized as Municipal Bonds, while QQQ is Nasdaq-100. SHM tracks Bloomberg Municipal Managed Money Short, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: State Street and Invesco. Their fees differ too: 0.20% for SHM and 0.18% for QQQ.
SHM currently has the higher Sharpe Ratio (2.76 vs 2.64), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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