CATF vs QQQ
American Century California Municipal Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. CATF offers more diversification with 304 holdings.
Side-by-Side Comparison
| Metric | CATF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $82M | $496.3B | |
| Dividend Yield | 3.57% | 0.44% | |
| Holdings | 304 | 108 | |
| YTD Return | +0.92% | +16.23% | |
| 1Y Return | +5.62% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 4.2% | 30.6% | |
| Max Drawdown | -5.1% | -83.0% | |
| Fund Family | American Century Investments | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jul 16, 2024 | Mar 10, 1999 |
CATF vs QQQ Performance
American Century California Municipal Bond ETF (CATF) is a ETF from American Century Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CATF returned +5.62% while QQQ returned +26.23%. Year to date, CATF is up 0.92% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.2% for CATF. 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 -5.1% for CATF 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 0.48. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CATF charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, CATF currently yields 3.57% against 0.44% for QQQ.
Holdings Overlap
CATF and QQQ share 0 holdings out of 186 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, CATF or QQQ?
CATF has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, CATF or QQQ?
Over the past year CATF returned +5.62% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), CATF annualized +2.50% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, CATF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.2% for CATF. Worst drawdown: CATF -5.1% vs QQQ -83.0%.
Should I hold both CATF and QQQ?
CATF and QQQ have a monthly-return correlation of 0.48, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CATF and QQQ?
CATF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 186 unique securities.
Which pays a higher dividend, CATF or QQQ?
CATF yields 3.57% while QQQ yields 0.44%, so CATF currently pays the higher dividend yield.
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