FLC vs QQQ
Flaherty & Crumrine Total Return Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FLC offers more diversification with 184 holdings.
Side-by-Side Comparison
| Metric | FLC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.64% | 0.18% | |
| AUM | $193M | $455.8B | |
| Dividend Yield | 6.71% | 0.41% | |
| Holdings | 257 | 108 | |
| YTD Return | -0.09% | +17.46% | |
| 1Y Return | +5.70% | +26.02% | |
| 3Y Return (annualized) | +12.96% | +25.51% | |
| 5Y Return (annualized) | -0.01% | +15.12% | |
| Volatility (annualized) | 19.3% | 30.6% | |
| Max Drawdown | -83.0% | -83.0% | |
| Fund Family | Flaherty & Crumrine | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 29, 2003 | Mar 10, 1999 |
FLC vs QQQ Performance
Flaherty & Crumrine Total Return Fund (FLC) is a ETF from Flaherty & Crumrine and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FLC returned +5.70% while QQQ returned +26.02%. Year to date, FLC is down 0.09% versus a gain of 17.46% for QQQ.
Over three years, FLC compounded at +12.96% per year against +25.51% for QQQ; over five years the annualized figures are -0.01% and +15.12% respectively. Across the full 23-year window we track, QQQ has the edge at +13.08% annualized vs -0.02%. 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 19.3% for FLC. 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 -83.0% for FLC 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLC charges 1.64% per year while QQQ charges 0.18%. On a $10,000 position that is $164 vs $18 annually, a gap of $146 per year that compounds over a long holding period. On income, FLC currently yields 6.71% against 0.41% for QQQ.
Holdings Overlap
FLC and QQQ share 1 holdings out of 286 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in FLC | Weight in QQQ | Difference |
|---|---|---|---|
| XEL | 0.40% | 0.22% | 0.18% |
Frequently Asked Questions
Which is cheaper, FLC or QQQ?
FLC has an expense ratio of 1.64% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $146 per year of difference.
Which performed better, FLC or QQQ?
Over the past year FLC returned +5.70% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), FLC annualized -0.02% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 19.3% for FLC. Worst drawdown: FLC -83.0% vs QQQ -83.0%.
Should I hold both FLC and QQQ?
FLC and QQQ have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLC and QQQ?
FLC and QQQ share 1 common holdings with a 0.2% weight overlap. Combined, they hold 286 unique securities.
Which pays a higher dividend, FLC or QQQ?
FLC yields 6.71% while QQQ yields 0.41%, so FLC currently pays the higher dividend yield.
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