AFB vs QQQ
AllianceBernstein National Municipal Income Fund Inc vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | AFB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.56% | 0.18% | |
| AUM | $341M | $455.8B | |
| Dividend Yield | 4.67% | 0.41% | |
| Holdings | 175 | 108 | |
| YTD Return | +4.18% | +17.46% | |
| 1Y Return | +11.84% | +26.02% | |
| 3Y Return (annualized) | +6.30% | +25.51% | |
| 5Y Return (annualized) | -2.00% | +15.12% | |
| Volatility (annualized) | 12.8% | 30.6% | |
| Max Drawdown | -56.2% | -83.0% | |
| Fund Family | AllianceBernstein L.P. | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 28, 2002 | Mar 10, 1999 |
AFB vs QQQ Performance
AllianceBernstein National Municipal Income Fund Inc (AFB) is a ETF from AllianceBernstein L.P. and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AFB returned +11.84% while QQQ returned +26.02%. Year to date, AFB is up 4.18% versus a gain of 17.46% for QQQ.
Over three years, AFB compounded at +6.30% per year against +25.51% for QQQ; over five years the annualized figures are -2.00% and +15.12% respectively. Across the full 25-year window we track, QQQ has the edge at +13.08% annualized vs -0.32%. 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 12.8% for AFB. 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 -56.2% for AFB and -83.0% for QQQ. 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AFB charges 1.56% per year while QQQ charges 0.18%. On a $10,000 position that is $156 vs $18 annually, a gap of $138 per year that compounds over a long holding period. On income, AFB currently yields 4.67% against 0.41% for QQQ.
Holdings Overlap
AFB and QQQ share 0 holdings out of 182 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, AFB or QQQ?
AFB has an expense ratio of 1.56% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $138 per year of difference.
Which performed better, AFB or QQQ?
Over the past year AFB returned +11.84% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (25 years), AFB annualized -0.32% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, AFB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.8% for AFB. Worst drawdown: AFB -56.2% vs QQQ -83.0%.
Should I hold both AFB and QQQ?
AFB and QQQ have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AFB and QQQ?
AFB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 182 unique securities.
Which pays a higher dividend, AFB or QQQ?
AFB yields 4.67% while QQQ yields 0.41%, so AFB currently pays the higher dividend yield.
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