FIAT vs QQQ

FIAT vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. FIAT delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: FIATMore Diversified: QQQ

Side-by-Side Comparison

MetricFIATQQQWinner
Expense Ratio1.05%0.18%
AUM$33M$496.3B
Dividend Yield100.90%0.44%
Holdings19108
YTD Return+24.52%+19.52%
1Y Return+52.00%+26.68%
3Y Return (annualized)-+26.64%
5Y Return (annualized)-+15.36%
Volatility (annualized)55.5%30.6%
Max Drawdown-70.5%-83.0%
Fund FamilyYieldMax ETFInvesco (US)
CategoryAlternativeEquity
InceptionJul 9, 2024Mar 10, 1999

FIAT vs QQQ Performance

YieldMax Short COIN Option Income Strategy ETF (FIAT) is a ETF from YieldMax ETF and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FIAT returned +52.00% while QQQ returned +26.68%. Year to date, FIAT is up 24.52% versus a gain of 19.52% for QQQ.

Risk: Volatility and Drawdowns

FIAT has been the more volatile fund, with annualized monthly volatility of 55.5% compared with 30.6% for QQQ. 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 -70.5% for FIAT 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 -0.50. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FIAT charges 1.05% per year while QQQ charges 0.18%. On a $10,000 position that is $105 vs $18 annually, a gap of $87 per year that compounds over a long holding period. On income, FIAT currently yields 100.90% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

FIAT 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, FIAT or QQQ?

FIAT has an expense ratio of 1.05% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $87 per year of difference.

Which performed better, FIAT or QQQ?

Over the past year FIAT returned +52.00% vs +26.68% for QQQ, so FIAT leads on 1-year performance. Over the longest common window we track (2 years), FIAT annualized -18.17% vs +13.14% for QQQ. Past performance does not guarantee future results.

Which is riskier, FIAT or QQQ?

FIAT has been the more volatile fund at 55.5% annualized versus 30.6% for QQQ. Worst drawdown: FIAT -70.5% vs QQQ -83.0%.

Should I hold both FIAT and QQQ?

FIAT and QQQ have a monthly-return correlation of -0.50, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FIAT and QQQ?

FIAT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.

Which pays a higher dividend, FIAT or QQQ?

FIAT yields 100.90% while QQQ yields 0.44%, so FIAT currently pays the higher dividend yield.

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