KIO vs QQQ
KKR Income Opportunities Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. KIO offers more diversification with 327 holdings.
Side-by-Side Comparison
| Metric | KIO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 4.59% | 0.18% | |
| AUM | $488M | $455.8B | |
| Dividend Yield | 12.12% | 0.41% | |
| Holdings | 327 | 108 | |
| YTD Return | +4.35% | +19.68% | |
| 1Y Return | -0.41% | +26.75% | |
| 3Y Return (annualized) | +9.33% | +26.25% | |
| 5Y Return (annualized) | +3.34% | +15.39% | |
| Volatility (annualized) | 14.3% | 30.6% | |
| Max Drawdown | -54.5% | -83.0% | |
| Fund Family | KKR Funds | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 26, 2013 | Mar 10, 1999 |
KIO vs QQQ Performance
KKR Income Opportunities Fund (KIO) is a ETF from KKR Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KIO returned -0.41% while QQQ returned +26.75%. Year to date, KIO is up 4.35% versus a gain of 19.68% for QQQ.
Over three years, KIO compounded at +9.33% per year against +26.25% for QQQ; over five years the annualized figures are +3.34% and +15.39% respectively. Across the full 13-year window we track, QQQ has the edge at +13.15% annualized vs +0.13%. 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 14.3% for KIO. 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 -54.5% for KIO 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KIO charges 4.59% per year while QQQ charges 0.18%. On a $10,000 position that is $459 vs $18 annually, a gap of $441 per year that compounds over a long holding period. On income, KIO currently yields 12.12% against 0.41% for QQQ.
Holdings Overlap
KIO and QQQ share 0 holdings out of 200 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, KIO or QQQ?
KIO has an expense ratio of 4.59% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $441 per year of difference.
Which performed better, KIO or QQQ?
Over the past year KIO returned -0.41% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), KIO annualized +0.13% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, KIO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.3% for KIO. Worst drawdown: KIO -54.5% vs QQQ -83.0%.
Should I hold both KIO and QQQ?
KIO and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KIO and QQQ?
KIO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 200 unique securities.
Which pays a higher dividend, KIO or QQQ?
KIO yields 12.12% while QQQ yields 0.41%, so KIO currently pays the higher dividend yield.
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