FLOT vs QQQ
iShares Floating Rate Bond ETF vs Invesco QQQ Trust, Series 1
Which is better, FLOT or QQQ?
QQQ has been ahead.
FLOT has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FLOT | QQQ |
|---|---|---|
| Expense Ratio | 0.15%Best | 0.18% |
| AUM | $10.7B | $483.5B |
| Dividend Yield | 4.40% | 0.44% |
| Holdings | 551 | 107 |
| YTD Return | +0.28% | +17.95%Best |
| 1Y Return | +1.22% | +21.77%Best |
| 3Y Return (annualized) | +4.31% | +25.63%Best |
| 5Y Return (annualized) | +3.78% | +15.24%Best |
| Volatility (annualized) | 1.7%Best | 17.5% |
| Max Drawdown | -13.5%Best | -35.1% |
| $10,000 over 5 years | $12,038 | $20,324Best |
| Fund Family | iShares by BlackRock (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Growth |
| Inception | Jun 14, 2011 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jun 17, 2011 to Sep 18, 2026 (15.3 years).
FLOT vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
FLOT vs QQQ Performance
iShares Floating Rate Bond ETF (FLOT) is an ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FLOT returned +1.22% while QQQ returned +21.77%. Year to date, FLOT is up 0.28% versus a gain of 17.95% for QQQ.
Over three years, FLOT compounded at +4.31% per year against +25.63% for QQQ; over five years the annualized figures are +3.78% and +15.24% respectively. Across the full 15-year window we track, QQQ has the edge at +18.80% annualized vs +2.11%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.5% compared with 1.7% for FLOT. 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 -13.5% for FLOT and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.35. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FLOT charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, FLOT currently yields 4.40% against 0.44% for QQQ.
Holdings Overlap
At least 0.3% of QQQ's money is in holdings FLOT also owns.
Stated as a floor: for FLOT, our book for it covers 66.3% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 322 positions we hold weights for in FLOT and 102 in QQQ, against full books of 551 and 107.
Top Shared Holdings
| Stock | Weight in FLOT | Weight in QQQ | Difference |
|---|---|---|---|
| HONAHoneywell Aerospace Inc | 0.14% | 0.28% | 0.14% |
You are not choosing between two funds in isolation.
Whichever of FLOT and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FLOT or QQQ?
FLOT has an expense ratio of 0.15% while QQQ charges 0.18%. FLOT is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, FLOT or QQQ?
Over the past year FLOT returned +1.22% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), FLOT annualized +2.11% vs +18.80% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FLOT or QQQ?
QQQ has been the more volatile fund at 17.5% annualized versus 1.7% for FLOT. Worst drawdown: FLOT -13.5% vs QQQ -35.1%.
Should I hold both FLOT and QQQ?
FLOT and QQQ have a monthly-return correlation of 0.35, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FLOT or QQQ?
FLOT yields 4.40% while QQQ yields 0.44%, so FLOT currently pays the higher dividend yield.
Is QQQ better than FLOT?
FLOT has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.