EIC vs QQQ
Eagle Point Income Co Inc 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 | EIC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 7.19% | 0.18% | |
| AUM | $290M | $455.8B | |
| Dividend Yield | 11.54% | 0.41% | |
| Holdings | 150 | 108 | |
| YTD Return | -5.21% | +18.20% | |
| 1Y Return | -7.28% | +27.63% | |
| 3Y Return (annualized) | +4.18% | +25.54% | |
| 5Y Return (annualized) | +2.76% | +15.12% | |
| Volatility (annualized) | 24.4% | 30.6% | |
| Max Drawdown | -68.9% | -83.0% | |
| Fund Family | Eagle Point Credit Company | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 23, 2019 | Mar 10, 1999 |
EIC vs QQQ Performance
Eagle Point Income Co Inc (EIC) is a ETF from Eagle Point Credit Company and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year EIC returned -7.28% while QQQ returned +27.63%. Year to date, EIC is down 5.21% versus a gain of 18.20% for QQQ.
Over three years, EIC compounded at +4.18% per year against +25.54% for QQQ; over five years the annualized figures are +2.76% and +15.12% respectively. Across the full 7-year window we track, QQQ has the edge at +13.11% annualized vs +0.10%. 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 24.4% for EIC. 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 -68.9% for EIC 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EIC charges 7.19% per year while QQQ charges 0.18%. On a $10,000 position that is $719 vs $18 annually, a gap of $701 per year that compounds over a long holding period. On income, EIC currently yields 11.54% against 0.41% for QQQ.
Holdings Overlap
EIC and QQQ share 0 holdings out of 105 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, EIC or QQQ?
EIC has an expense ratio of 7.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $701 per year of difference.
Which performed better, EIC or QQQ?
Over the past year EIC returned -7.28% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), EIC annualized +0.10% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, EIC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 24.4% for EIC. Worst drawdown: EIC -68.9% vs QQQ -83.0%.
Should I hold both EIC and QQQ?
EIC and QQQ have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EIC and QQQ?
EIC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, EIC or QQQ?
EIC yields 11.54% while QQQ yields 0.41%, so EIC currently pays the higher dividend yield.
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