SHY vs. QQQM

Last updated Jun 13, 2026

SHY (iShares 1-3 Year Treasury Bond ETF) and QQQM (Invesco NASDAQ 100 ETF) are both exchange-traded funds - SHY is a Government Bonds fund tracking the ICE US Treasury 1-3 Year Index, while QQQM is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 5 years, SHY returned 1.74%/yr vs 16.94%/yr for QQQM. At a 0.10 correlation, their price movements are largely independent. Both charge a 0.15% expense ratio.

Performance

SHY vs. QQQM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares 1-3 Year Treasury Bond ETF (SHY) and Invesco NASDAQ 100 ETF (QQQM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SHY achieves a 0.55% return, which is significantly lower than QQQM's 17.59% return.

SHY

• 1D: -0.02%
• 1M: 0.15%
• YTD: 0.55%
• 6M: 0.80%
• 1Y: 3.22%
• 3Y*: 4.15%
• 5Y*: 1.74%
• 10Y*: 1.65%

QQQM

• 1D: 0.67%
• 1M: 0.97%
• YTD: 17.59%
• 6M: 17.91%
• 1Y: 35.90%
• 3Y*: 26.52%
• 5Y*: 16.94%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

SHY vs. QQQM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
SHY iShares 1-3 Year Treasury Bond ETF	0.55%	4.95%	3.92%	4.16%	-3.88%	-0.71%	0.05%
QQQM Invesco NASDAQ 100 ETF	17.59%	20.85%	25.68%	55.01%	-32.52%	27.45%	6.64%

Correlation

The correlation between SHY and QQQM is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.09
Correlation (5Y) Calculated over the trailing 5-year period	0.11
Correlation (All Time) Calculated using the full available price history since Oct 13, 2020	0.10

Return for Risk

SHY vs. QQQM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SHY

SHY Risk / Return Rank: 86
SHY Sharpe Ratio Rank: 86
SHY Sortino Ratio Rank: 92
SHY Omega Ratio Rank: 89
SHY Calmar Ratio Rank: 80
SHY Martin Ratio Rank: 83

QQQM

QQQM Risk / Return Rank: 72
QQQM Sharpe Ratio Rank: 76
QQQM Sortino Ratio Rank: 71
QQQM Omega Ratio Rank: 73
QQQM Calmar Ratio Rank: 69
QQQM Martin Ratio Rank: 70

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SHY vs. QQQM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares 1-3 Year Treasury Bond ETF (SHY) and Invesco NASDAQ 100 ETF (QQQM). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SHY	QQQM	Difference
Sharpe ratio: Return per unit of total volatility	2.43	2.11	+0.32
Sortino ratio: Return per unit of downside risk	3.97	2.74	+1.23
Omega ratio: Gain probability vs. loss probability	1.50	1.37	+0.13
Calmar ratio: Return relative to maximum drawdown	3.64	3.02	+0.62
Martin ratio: Return relative to average drawdown	14.45	11.23	+3.22

SHY vs. QQQM - Sharpe Ratio Comparison

The current SHY Sharpe Ratio is 2.43, which is comparable to the QQQM Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of SHY and QQQM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SHY vs. QQQM - Drawdown Comparison

The maximum SHY drawdown since its inception was -5.71%, smaller than the maximum QQQM drawdown of -35.04%. Use the drawdown chart below to compare losses from any high point for SHY and QQQM.

Drawdown Indicators

	SHY	QQQM	Difference
Max Drawdown Largest peak-to-trough decline	-5.71%	-35.04%	+29.33%
Max Drawdown (1Y) Largest decline over 1 year	-0.89%	-11.96%	+11.07%
Max Drawdown (3Y) Largest decline over 3 years	-0.97%	-22.70%	+21.73%
Max Drawdown (5Y) Largest decline over 5 years	-5.71%	-35.04%	+29.33%
Max Drawdown (10Y) Largest decline over 10 years	-5.71%	—	—
Current Drawdown Current decline from peak	-0.18%	-3.33%	+3.15%
Average Drawdown Average peak-to-trough decline	-0.52%	-8.23%	+7.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.22%	3.21%	-2.99%

Volatility

SHY vs. QQQM - Volatility Comparison

The current volatility for iShares 1-3 Year Treasury Bond ETF (SHY) is 0.40%, while Invesco NASDAQ 100 ETF (QQQM) has a volatility of 7.45%. This indicates that SHY experiences smaller price fluctuations and is considered to be less risky than QQQM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SHY	QQQM	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.40%	7.45%	-7.05%
Volatility (6M) Calculated over the trailing 6-month period	0.95%	13.71%	-12.76%
Volatility (1Y) Calculated over the trailing 1-year period	1.33%	17.11%	-15.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	1.99%	22.40%	-20.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	1.57%	22.22%	-20.65%

SHY vs. QQQM - Expense Ratio Comparison

Both SHY and QQQM have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

SHY vs. QQQM - Dividend Comparison

SHY's dividend yield for the trailing twelve months is around 3.68%, more than QQQM's 0.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QQQM Invesco NASDAQ 100 ETF	0.43%	0.50%	0.61%	0.65%	0.83%	0.40%	0.16%	0.00%	0.00%	0.00%	0.00%	0.00%
SHY iShares 1-3 Year Treasury Bond ETF	3.68%	3.81%	3.92%	2.99%	1.30%	0.26%	0.94%	2.12%	1.72%	0.98%	0.71%	0.54%

Frequently Asked Questions

Can I hold both SHY and QQQM in my portfolio?

SHY and QQQM have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHY or QQQM?

QQQM has higher volatility (7.45%) compared to SHY (0.40%). In terms of maximum drawdown, SHY dropped -5.71% vs QQQM's -35.04%.

Which ETF is better, SHY or QQQM?

On 5-year performance, QQQM leads with 16.94% vs 1.74% for SHY. Both ETFs have the same 0.15% expense ratio. On volatility, SHY has been the lower-risk option at 0.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SHY or QQQM?

Over the 5-year period, QQQM has performed better with a 16.94% return vs 1.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHY or QQQM?

SHY and QQQM have the same expense ratio: 0.15% per year.

Which ETF pays a higher dividend yield, SHY or QQQM?

SHY has the higher dividend yield at 3.68%, compared with 0.43% for QQQM.

What is the main difference between SHY and QQQM?

SHY is categorized as Government Bonds, while QQQM is Nasdaq-100. SHY tracks ICE US Treasury 1-3 Year Index, while QQQM tracks NASDAQ-100 Index. They also come from different issuers: iShares and Invesco.

Which has better risk-adjusted returns?

SHY currently has the higher Sharpe Ratio (2.43 vs 2.11), 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.