EFR vs QQQ
Eaton Vance Senior Floating-Rate Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. EFR offers more diversification with 511 holdings.
Side-by-Side Comparison
| Metric | EFR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 5.17% | 0.18% | |
| AUM | $374M | $496.3B | |
| Dividend Yield | 7.72% | 0.44% | |
| Holdings | 511 | 108 | |
| YTD Return | +1.32% | +17.07% | |
| 1Y Return | -0.75% | +26.39% | |
| 3Y Return (annualized) | +5.69% | +26.08% | |
| 5Y Return (annualized) | +3.68% | +15.18% | |
| Volatility (annualized) | 15.0% | 30.6% | |
| Max Drawdown | -66.8% | -83.0% | |
| Fund Family | Eaton Vance | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 24, 2003 | Mar 10, 1999 |
EFR vs QQQ Performance
Eaton Vance Senior Floating-Rate Trust (EFR) is a ETF from Eaton Vance and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EFR returned -0.75% while QQQ returned +26.39%. Year to date, EFR is up 1.32% versus a gain of 17.07% for QQQ.
Over three years, EFR compounded at +5.69% per year against +26.08% for QQQ; over five years the annualized figures are +3.68% and +15.18% respectively. Across the full 23-year window we track, QQQ has the edge at +13.05% annualized vs -0.60%. 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 15.0% for EFR. 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 -66.8% for EFR 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EFR charges 5.17% per year while QQQ charges 0.18%. On a $10,000 position that is $517 vs $18 annually, a gap of $499 per year that compounds over a long holding period. On income, EFR currently yields 7.72% against 0.44% for QQQ.
Holdings Overlap
EFR and QQQ share 0 holdings out of 282 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, EFR or QQQ?
EFR has an expense ratio of 5.17% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $499 per year of difference.
Which performed better, EFR or QQQ?
Over the past year EFR returned -0.75% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), EFR annualized -0.60% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, EFR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.0% for EFR. Worst drawdown: EFR -66.8% vs QQQ -83.0%.
Should I hold both EFR and QQQ?
EFR and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFR and QQQ?
EFR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 282 unique securities.
Which pays a higher dividend, EFR or QQQ?
EFR yields 7.72% while QQQ yields 0.44%, so EFR currently pays the higher dividend yield.
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