HFRO vs QQQ
Highland Opportunities and Income Fund vs Invesco QQQ Trust, Series 1
Which is better, HFRO or QQQ?
Bank Loan against Large Cap Growth.
QQQ 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 | HFRO | QQQ |
|---|---|---|
| Expense Ratio | 1.18% | 0.18%Best |
| AUM | $625M | $498.6B |
| Dividend Yield | 3.89% | 0.42% |
| Holdings | 69 | 321 |
| YTD Return | +19.81% | +22.67%Best |
| 1Y Return | +17.03% | +24.33%Best |
| 3Y Return (annualized) | +3.83% | +29.05%Best |
| 5Y Return (annualized) | -0.68% | +17.00%Best |
| Volatility (annualized) | 24.9% | 19.9%Best |
| Max Drawdown | -60.5% | -35.1%Best |
| $10,000 over 5 years | $9,665 | $21,924Best |
| Fund Family | NexPoint | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Bank Loan | Large Cap Growth |
| Inception | Jan 13, 2000 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 6, 2017 to Oct 2, 2026 (8.9 years).
HFRO 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 covers the 8.9 years both funds cover.
HFRO vs QQQ Performance
Highland Opportunities and Income Fund (HFRO) is an ETF from NexPoint and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year HFRO returned +17.03% while QQQ returned +24.33%. Year to date, HFRO is up 19.81% versus a gain of 22.67% for QQQ.
Over three years, HFRO compounded at +3.83% per year against +29.05% for QQQ; over five years the annualized figures are -0.68% and +17.00% respectively. Across the full 9-year window we track, QQQ has the edge at +19.92% annualized vs -3.78%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HFRO has been the more volatile fund, with annualized monthly volatility of 24.9% compared with 19.9% 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 -60.5% for HFRO 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 0.38. They move together some of the time, and apart the rest.
Fees and Cost Over Time
HFRO charges 1.18% per year while QQQ charges 0.18%. On a $10,000 position that is $118 vs $18 annually, a gap of $100 per year that compounds over a long holding period. On income, HFRO currently yields 3.89% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 15 holdings in HFRO and 102 in QQQ, totalling 24.0% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 77 days apart, HFRO as of Jun 30, 2026 and QQQ as of Sep 15, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 15 positions we hold weights for in HFRO and 102 in QQQ, against full books of 69 and 321.
You are not choosing between two funds in isolation.
Whichever of HFRO 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, HFRO or QQQ?
HFRO has an expense ratio of 1.18% while QQQ charges 0.18%. QQQ is the cheaper option, by $100 a year on a $10,000 investment.
Which performed better, HFRO or QQQ?
Over the past year HFRO returned +17.03% vs +24.33% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), HFRO annualized -3.78% vs +19.92% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HFRO or QQQ?
HFRO has been the more volatile fund at 24.9% annualized versus 19.9% for QQQ. Worst drawdown: HFRO -60.5% vs QQQ -35.1%.
Should I hold both HFRO and QQQ?
HFRO and QQQ have a monthly-return correlation of 0.38, 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, HFRO or QQQ?
HFRO yields 3.89% while QQQ yields 0.42%, so HFRO currently pays the higher dividend yield.
Is QQQ better than HFRO?
QQQ 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.