DEFR vs QQQ
Aptus Deferred Income 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 108 holdings.
Side-by-Side Comparison
| Metric | DEFR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.18% | |
| AUM | $147M | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 10 | 108 | |
| YTD Return | -0.22% | +16.64% | |
| 1Y Return | +3.33% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 4.3% | 30.6% | |
| Max Drawdown | -3.9% | -83.0% | |
| Fund Family | Aptus Capital Advisors | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 13, 2025 | Mar 10, 1999 |
DEFR vs QQQ Performance
Aptus Deferred Income ETF (DEFR) is a ETF from Aptus Capital Advisors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year DEFR returned +3.33% while QQQ returned +27.27%. Year to date, DEFR is down 0.22% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 4.3% for DEFR. 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 -3.9% for DEFR 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DEFR charges 0.79% per year while QQQ charges 0.18%. On a $10,000 position that is $79 vs $18 annually, a gap of $61 per year that compounds over a long holding period. On income, DEFR currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
DEFR and QQQ share 0 holdings out of 103 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, DEFR or QQQ?
DEFR has an expense ratio of 0.79% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, DEFR or QQQ?
Over the past year DEFR returned +3.33% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), DEFR annualized +5.18% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, DEFR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.3% for DEFR. Worst drawdown: DEFR -3.9% vs QQQ -83.0%.
Should I hold both DEFR and QQQ?
DEFR and QQQ have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DEFR and QQQ?
DEFR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, DEFR or QQQ?
DEFR yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
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