ICLO vs QQQ
Invesco AAA CLO Floating Rate Note ETF vs Invesco QQQ Trust, Series 1
Which is better, ICLO or QQQ?
Bank Loan against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y 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 | ICLO | QQQ |
|---|---|---|
| Expense Ratio | 0.19% | 0.18%Best |
| AUM | $588M | $498.6B |
| Dividend Yield | 4.87% | 0.42% |
| Holdings | 346 | 321 |
| YTD Return | +0.16% | +22.67%Best |
| 1Y Return | +0.99% | +24.33%Best |
| 3Y Return (annualized) | +4.79% | +29.05%Best |
| 5Y Return (annualized) | - | +17.00% |
| Volatility (annualized) | 1.3%Best | 17.3% |
| Max Drawdown | -3.5%Best | -22.8% |
| $10,000 over 3.8 years | $12,296 | $27,117Best |
| Fund Family | Invesco (US) | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Bank Loan | Large Cap Growth |
| Inception | Dec 9, 2022 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 3.8 years row, are measured over the window both funds cover: Dec 9, 2022 to Oct 2, 2026 (3.8 years).
ICLO 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 3.8 years both funds cover.
ICLO vs QQQ Performance
Invesco AAA CLO Floating Rate Note ETF (ICLO) is an ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year ICLO returned +0.99% while QQQ returned +24.33%. Year to date, ICLO is up 0.16% versus a gain of 22.67% for QQQ.
Over three years, ICLO compounded at +4.79% per year against +29.05% for QQQ. Across the full 4-year window we track, QQQ has the edge at +30.02% annualized vs +5.59%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 1.3% for ICLO. 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 -3.5% for ICLO and -22.8% 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 0.27. They move largely independently of each other.
Fees and Cost Over Time
ICLO charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, ICLO currently yields 4.87% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 15 holdings in ICLO and 102 in QQQ, totalling 6.5% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 15 positions we hold weights for in ICLO and 102 in QQQ, against full books of 346 and 321.
You are not choosing between two funds in isolation.
Whichever of ICLO 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, ICLO or QQQ?
ICLO has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, ICLO or QQQ?
Over the past year ICLO returned +0.99% vs +24.33% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), ICLO annualized +5.59% vs +30.02% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, ICLO or QQQ?
QQQ has been the more volatile fund at 17.3% annualized versus 1.3% for ICLO. Worst drawdown: ICLO -3.5% vs QQQ -22.8%.
Should I hold both ICLO and QQQ?
ICLO and QQQ have a monthly-return correlation of 0.27, 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, ICLO or QQQ?
ICLO yields 4.87% while QQQ yields 0.42%, so ICLO currently pays the higher dividend yield.
Is QQQ better than ICLO?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.