INKM vs QQQ
State Street Income Allocation ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | INKM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $75M | $496.3B | |
| Dividend Yield | 4.78% | 0.44% | |
| Holdings | 15 | 108 | |
| YTD Return | +7.13% | +16.64% | |
| 1Y Return | +10.82% | +27.27% | |
| 3Y Return (annualized) | +10.95% | +25.96% | |
| 5Y Return (annualized) | +4.33% | +14.54% | |
| Volatility (annualized) | 9.4% | 30.6% | |
| Max Drawdown | -28.6% | -83.0% | |
| Fund Family | State Street Investment Management | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Apr 25, 2012 | Mar 10, 1999 |
INKM vs QQQ Performance
State Street Income Allocation ETF (INKM) is a ETF from State Street Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year INKM returned +10.82% while QQQ returned +27.27%. Year to date, INKM is up 7.13% versus a gain of 16.64% for QQQ.
Over three years, INKM compounded at +10.95% per year against +25.96% for QQQ; over five years the annualized figures are +4.33% and +14.54% respectively. Across the full 14-year window we track, QQQ has the edge at +13.03% annualized vs +2.83%. 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 9.4% for INKM. 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 -28.6% for INKM 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
INKM charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, INKM currently yields 4.78% against 0.44% for QQQ.
Holdings Overlap
INKM and QQQ share 0 holdings out of 117 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, INKM or QQQ?
INKM has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, INKM or QQQ?
Over the past year INKM returned +10.82% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), INKM annualized +2.83% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, INKM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 9.4% for INKM. Worst drawdown: INKM -28.6% vs QQQ -83.0%.
Should I hold both INKM and QQQ?
INKM and QQQ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between INKM and QQQ?
INKM and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 117 unique securities.
Which pays a higher dividend, INKM or QQQ?
INKM yields 4.78% while QQQ yields 0.44%, so INKM currently pays the higher dividend yield.
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