AVK vs QQQ
Advent Convertible and Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. AVK offers more diversification with 435 holdings.
Side-by-Side Comparison
| Metric | AVK | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.77% | 0.18% | |
| AUM | $623M | $496.3B | |
| Dividend Yield | 10.48% | 0.44% | |
| Holdings | 435 | 108 | |
| YTD Return | +7.94% | +16.23% | |
| 1Y Return | +14.19% | +26.23% | |
| 3Y Return (annualized) | +16.23% | +25.75% | |
| 5Y Return (annualized) | +4.85% | +14.78% | |
| Volatility (annualized) | 20.9% | 30.6% | |
| Max Drawdown | -72.6% | -83.0% | |
| Fund Family | Guggenheim Investments | Invesco (US) | |
| Category | Convertible | Equity | |
| Inception | Apr 29, 2003 | Mar 10, 1999 |
AVK vs QQQ Performance
Advent Convertible and Income Fund (AVK) is a ETF from Guggenheim Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AVK returned +14.19% while QQQ returned +26.23%. Year to date, AVK is up 7.94% versus a gain of 16.23% for QQQ.
Over three years, AVK compounded at +16.23% per year against +25.75% for QQQ; over five years the annualized figures are +4.85% and +14.78% respectively. Across the full 23-year window we track, QQQ has the edge at +13.02% annualized vs -0.02%. 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 20.9% for AVK. 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 -72.6% for AVK 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AVK charges 2.77% per year while QQQ charges 0.18%. On a $10,000 position that is $277 vs $18 annually, a gap of $259 per year that compounds over a long holding period. On income, AVK currently yields 10.48% against 0.44% for QQQ.
Holdings Overlap
AVK and QQQ share 4 holdings out of 363 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AVK or QQQ?
AVK has an expense ratio of 2.77% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $259 per year of difference.
Which performed better, AVK or QQQ?
Over the past year AVK returned +14.19% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), AVK annualized -0.02% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, AVK or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.9% for AVK. Worst drawdown: AVK -72.6% vs QQQ -83.0%.
Should I hold both AVK and QQQ?
AVK and QQQ have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVK and QQQ?
AVK and QQQ share 4 common holdings with a 1.6% weight overlap. Combined, they hold 363 unique securities.
Which pays a higher dividend, AVK or QQQ?
AVK yields 10.48% while QQQ yields 0.44%, so AVK currently pays the higher dividend yield.
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