EFT vs QQQ
Eaton Vance Floating Rate Income Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. EFT offers more diversification with 501 holdings.
Side-by-Side Comparison
| Metric | EFT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 5.35% | 0.18% | |
| AUM | $380M | $496.3B | |
| Dividend Yield | 7.92% | 0.44% | |
| Holdings | 501 | 108 | |
| YTD Return | +1.70% | +17.30% | |
| 1Y Return | -1.98% | +24.93% | |
| 3Y Return (annualized) | +6.09% | +26.19% | |
| 5Y Return (annualized) | +3.01% | +15.34% | |
| Volatility (annualized) | 14.1% | 30.6% | |
| Max Drawdown | -66.4% | -83.0% | |
| Fund Family | Eaton Vance | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 29, 2004 | Mar 10, 1999 |
EFT vs QQQ Performance
Eaton Vance Floating Rate Income Trust (EFT) is a ETF from Eaton Vance and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EFT returned -1.98% while QQQ returned +24.93%. Year to date, EFT is up 1.70% versus a gain of 17.30% for QQQ.
Over three years, EFT compounded at +6.09% per year against +26.19% for QQQ; over five years the annualized figures are +3.01% and +15.34% respectively. Across the full 22-year window we track, QQQ has the edge at +13.06% annualized vs -0.56%. 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 14.1% for EFT. 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 -66.4% for EFT 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EFT charges 5.35% per year while QQQ charges 0.18%. On a $10,000 position that is $535 vs $18 annually, a gap of $517 per year that compounds over a long holding period. On income, EFT currently yields 7.92% against 0.44% for QQQ.
Holdings Overlap
EFT and QQQ share 0 holdings out of 277 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, EFT or QQQ?
EFT has an expense ratio of 5.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $517 per year of difference.
Which performed better, EFT or QQQ?
Over the past year EFT returned -1.98% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (22 years), EFT annualized -0.56% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, EFT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.1% for EFT. Worst drawdown: EFT -66.4% vs QQQ -83.0%.
Should I hold both EFT and QQQ?
EFT and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFT and QQQ?
EFT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 277 unique securities.
Which pays a higher dividend, EFT or QQQ?
EFT yields 7.92% while QQQ yields 0.44%, so EFT currently pays the higher dividend yield.
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