KLIP vs QQQ
KraneShares KWEB Covered Call Strategy 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 | KLIP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.94% | 0.18% | |
| AUM | $100M | $496.3B | |
| Dividend Yield | 29.86% | 0.44% | |
| Holdings | 7 | 108 | |
| YTD Return | -10.86% | +16.64% | |
| 1Y Return | -8.37% | +27.27% | |
| 3Y Return (annualized) | +6.89% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 14.6% | 30.6% | |
| Max Drawdown | -21.5% | -83.0% | |
| Fund Family | KraneShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 11, 2023 | Mar 10, 1999 |
KLIP vs QQQ Performance
KraneShares KWEB Covered Call Strategy ETF (KLIP) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KLIP returned -8.37% while QQQ returned +27.27%. Year to date, KLIP is down 10.86% versus a gain of 16.64% for QQQ.
Over three years, KLIP compounded at +6.89% per year against +25.96% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +5.28%. 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 14.6% for KLIP. 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 -21.5% for KLIP 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 0.16. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KLIP charges 0.94% per year while QQQ charges 0.18%. On a $10,000 position that is $94 vs $18 annually, a gap of $76 per year that compounds over a long holding period. On income, KLIP currently yields 29.86% against 0.44% for QQQ.
Holdings Overlap
KLIP and QQQ share 0 holdings out of 103 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, KLIP or QQQ?
KLIP has an expense ratio of 0.94% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, KLIP or QQQ?
Over the past year KLIP returned -8.37% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), KLIP annualized +5.28% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, KLIP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.6% for KLIP. Worst drawdown: KLIP -21.5% vs QQQ -83.0%.
Should I hold both KLIP and QQQ?
KLIP and QQQ have a monthly-return correlation of 0.16, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KLIP and QQQ?
KLIP and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, KLIP or QQQ?
KLIP yields 29.86% while QQQ yields 0.44%, so KLIP currently pays the higher dividend yield.
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