ICLO vs QQQ
Invesco AAA CLO Floating Rate Note ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. ICLO offers more diversification with 184 holdings.
Side-by-Side Comparison
| Metric | ICLO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.18% | |
| AUM | $540M | $496.3B | |
| Dividend Yield | 4.97% | 0.44% | |
| Holdings | 184 | 108 | |
| YTD Return | +0.35% | +16.64% | |
| 1Y Return | +2.02% | +27.27% | |
| 3Y Return (annualized) | +5.20% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 1.3% | 30.6% | |
| Max Drawdown | -3.5% | -83.0% | |
| Fund Family | Invesco (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 9, 2022 | Mar 10, 1999 |
ICLO vs QQQ Performance
Invesco AAA CLO Floating Rate Note ETF (ICLO) is a ETF from Invesco (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ICLO returned +2.02% while QQQ returned +27.27%. Year to date, ICLO is up 0.35% versus a gain of 16.64% for QQQ.
Over three years, ICLO compounded at +5.20% per year against +25.96% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +5.82%. 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 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 -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 0.29. They move independently enough that combining them can meaningfully diversify a portfolio.
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 4.97% against 0.44% for QQQ.
Holdings Overlap
ICLO and QQQ share 0 holdings out of 122 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, ICLO or QQQ?
ICLO has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, ICLO or QQQ?
Over the past year ICLO returned +2.02% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), ICLO annualized +5.82% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, ICLO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 1.3% for ICLO. Worst drawdown: ICLO -3.5% vs QQQ -83.0%.
Should I hold both ICLO and QQQ?
ICLO and QQQ have a monthly-return correlation of 0.29, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ICLO and QQQ?
ICLO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 122 unique securities.
Which pays a higher dividend, ICLO or QQQ?
ICLO yields 4.97% while QQQ yields 0.44%, so ICLO currently pays the higher dividend yield.
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