CEFS vs QQQ
Saba Closed-End Funds ETF 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 | CEFS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 4.29% | 0.18% | |
| AUM | $426M | $455.8B | |
| Dividend Yield | 6.08% | 0.41% | |
| Holdings | 68 | 108 | |
| YTD Return | +12.68% | +19.68% | |
| 1Y Return | +16.63% | +26.75% | |
| 3Y Return (annualized) | +18.82% | +26.25% | |
| 5Y Return (annualized) | +12.66% | +15.39% | |
| Volatility (annualized) | 14.3% | 30.6% | |
| Max Drawdown | -39.0% | -83.0% | |
| Fund Family | Saba Capital | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Mar 20, 2017 | Mar 10, 1999 |
CEFS vs QQQ Performance
Saba Closed-End Funds ETF (CEFS) is a ETF from Saba Capital and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CEFS returned +16.63% while QQQ returned +26.75%. Year to date, CEFS is up 12.68% versus a gain of 19.68% for QQQ.
Over three years, CEFS compounded at +18.82% per year against +26.25% for QQQ; over five years the annualized figures are +12.66% and +15.39% respectively. Across the full 9-year window we track, QQQ has the edge at +13.15% annualized vs +11.75%. 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 14.3% for CEFS. 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 -39.0% for CEFS 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CEFS charges 4.29% per year while QQQ charges 0.18%. On a $10,000 position that is $429 vs $18 annually, a gap of $411 per year that compounds over a long holding period. On income, CEFS currently yields 6.08% against 0.41% for QQQ.
Holdings Overlap
CEFS and QQQ share 0 holdings out of 163 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, CEFS or QQQ?
CEFS has an expense ratio of 4.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $411 per year of difference.
Which performed better, CEFS or QQQ?
Over the past year CEFS returned +16.63% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), CEFS annualized +11.75% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, CEFS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.3% for CEFS. Worst drawdown: CEFS -39.0% vs QQQ -83.0%.
Should I hold both CEFS and QQQ?
CEFS and QQQ have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CEFS and QQQ?
CEFS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 163 unique securities.
Which pays a higher dividend, CEFS or QQQ?
CEFS yields 6.08% while QQQ yields 0.41%, so CEFS currently pays the higher dividend yield.
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