KMLM vs QQQ
KraneShares Mount Lucas Managed Futures Index 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 | KMLM | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.90% | 0.18% | |
| AUM | $389M | $496.3B | |
| Dividend Yield | 4.47% | 0.44% | |
| Holdings | 32 | 108 | |
| YTD Return | +12.03% | +16.23% | |
| 1Y Return | +14.88% | +26.23% | |
| 3Y Return (annualized) | -0.49% | +25.75% | |
| 5Y Return (annualized) | +6.21% | +14.78% | |
| Volatility (annualized) | 12.9% | 30.6% | |
| Max Drawdown | -27.5% | -83.0% | |
| Fund Family | KraneShares | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 1, 2020 | Mar 10, 1999 |
KMLM vs QQQ Performance
KraneShares Mount Lucas Managed Futures Index Strategy ETF (KMLM) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KMLM returned +14.88% while QQQ returned +26.23%. Year to date, KMLM is up 12.03% versus a gain of 16.23% for QQQ.
Over three years, KMLM compounded at -0.49% per year against +25.75% for QQQ; over five years the annualized figures are +6.21% and +14.78% respectively. Across the full 6-year window we track, QQQ has the edge at +13.02% annualized vs +7.28%. 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 12.9% for KMLM. 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 -27.5% for KMLM 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 -0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KMLM charges 0.90% per year while QQQ charges 0.18%. On a $10,000 position that is $90 vs $18 annually, a gap of $72 per year that compounds over a long holding period. On income, KMLM currently yields 4.47% against 0.44% for QQQ.
Holdings Overlap
KMLM and QQQ share 5 holdings out of 112 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, KMLM or QQQ?
KMLM has an expense ratio of 0.90% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $72 per year of difference.
Which performed better, KMLM or QQQ?
Over the past year KMLM returned +14.88% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), KMLM annualized +7.28% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, KMLM or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.9% for KMLM. Worst drawdown: KMLM -27.5% vs QQQ -83.0%.
Should I hold both KMLM and QQQ?
KMLM and QQQ have a monthly-return correlation of -0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KMLM and QQQ?
KMLM and QQQ share 5 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.
Which pays a higher dividend, KMLM or QQQ?
KMLM yields 4.47% while QQQ yields 0.44%, so KMLM currently pays the higher dividend yield.
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