KHPI vs QQQ
Kensington Hedged Premium Income 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 | KHPI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.18% | |
| AUM | $413M | $455.8B | |
| Dividend Yield | 8.96% | 0.41% | |
| Holdings | 7 | 108 | |
| YTD Return | +2.96% | +19.68% | |
| 1Y Return | +6.56% | +26.75% | |
| 3Y Return (annualized) | - | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 8.9% | 30.6% | |
| Max Drawdown | -10.6% | -83.0% | |
| Fund Family | Kensington Funds | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Sep 4, 2024 | Mar 10, 1999 |
KHPI vs QQQ Performance
Kensington Hedged Premium Income ETF (KHPI) is a ETF from Kensington Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KHPI returned +6.56% while QQQ returned +26.75%. Year to date, KHPI is up 2.96% versus a gain of 19.68% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 8.9% for KHPI. 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 -10.6% for KHPI 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
KHPI charges 0.98% per year while QQQ charges 0.18%. On a $10,000 position that is $98 vs $18 annually, a gap of $80 per year that compounds over a long holding period. On income, KHPI currently yields 8.96% against 0.41% for QQQ.
Holdings Overlap
KHPI and QQQ share 0 holdings out of 104 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, KHPI or QQQ?
KHPI has an expense ratio of 0.98% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $80 per year of difference.
Which performed better, KHPI or QQQ?
Over the past year KHPI returned +6.56% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), KHPI annualized +9.18% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, KHPI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.9% for KHPI. Worst drawdown: KHPI -10.6% vs QQQ -83.0%.
Should I hold both KHPI and QQQ?
KHPI and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KHPI and QQQ?
KHPI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, KHPI or QQQ?
KHPI yields 8.96% while QQQ yields 0.41%, so KHPI currently pays the higher dividend yield.
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