CII vs QQQ
BlackRock Enhanced Capital and Income Fund, Inc vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. CII delivered stronger 1-year returns. CII offers more diversification with 147 holdings.
Side-by-Side Comparison
| Metric | CII | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.91% | 0.18% | |
| AUM | $1.1B | $496.3B | |
| Dividend Yield | 16.48% | 0.44% | |
| Holdings | 147 | 108 | |
| YTD Return | +9.89% | +17.07% | |
| 1Y Return | +30.62% | +26.39% | |
| 3Y Return (annualized) | +21.40% | +26.08% | |
| 5Y Return (annualized) | +13.23% | +15.18% | |
| Volatility (annualized) | 17.9% | 30.6% | |
| Max Drawdown | -64.8% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Apr 27, 2004 | Mar 10, 1999 |
CII vs QQQ Performance
BlackRock Enhanced Capital and Income Fund, Inc (CII) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CII returned +30.62% while QQQ returned +26.39%. Year to date, CII is up 9.89% versus a gain of 17.07% for QQQ.
Over three years, CII compounded at +21.40% per year against +26.08% for QQQ; over five years the annualized figures are +13.23% and +15.18% respectively. Across the full 22-year window we track, QQQ has the edge at +13.05% annualized vs +3.23%. 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 17.9% for CII. 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 -64.8% for CII 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CII charges 0.91% per year while QQQ charges 0.18%. On a $10,000 position that is $91 vs $18 annually, a gap of $73 per year that compounds over a long holding period. On income, CII currently yields 16.48% against 0.44% for QQQ.
Holdings Overlap
CII and QQQ share 13 holdings out of 126 unique holdings combined, representing a 36.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CII or QQQ?
CII has an expense ratio of 0.91% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $73 per year of difference.
Which performed better, CII or QQQ?
Over the past year CII returned +30.62% vs +26.39% for QQQ, so CII leads on 1-year performance. Over the longest common window we track (22 years), CII annualized +3.23% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, CII or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.9% for CII. Worst drawdown: CII -64.8% vs QQQ -83.0%.
Should I hold both CII and QQQ?
CII and QQQ have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CII and QQQ?
CII and QQQ share 13 common holdings with a 36.7% weight overlap. Combined, they hold 126 unique securities.
Which pays a higher dividend, CII or QQQ?
CII yields 16.48% while QQQ yields 0.44%, so CII currently pays the higher dividend yield.
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