KTF vs QQQ
DWS Municipal Income Trust vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ delivered stronger 1-year returns. KTF offers more diversification with 123 holdings.
Side-by-Side Comparison
| Metric | KTF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | - | 0.18% | |
| AUM | $353M | $455.8B | |
| Dividend Yield | 8.22% | 0.41% | |
| Holdings | 244 | 108 | |
| YTD Return | +4.12% | +18.31% | |
| 1Y Return | +13.85% | +25.37% | |
| 3Y Return (annualized) | +9.61% | +25.79% | |
| 5Y Return (annualized) | -0.36% | +15.20% | |
| Volatility (annualized) | 12.5% | 30.6% | |
| Max Drawdown | -60.4% | -83.0% | |
| Fund Family | DWS | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Oct 20, 1988 | Mar 10, 1999 |
KTF vs QQQ Performance
DWS Municipal Income Trust (KTF) is a ETF from DWS and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KTF returned +13.85% while QQQ returned +25.37%. Year to date, KTF is up 4.12% versus a gain of 18.31% for QQQ.
Over three years, KTF compounded at +9.61% per year against +25.79% for QQQ; over five years the annualized figures are -0.36% and +15.20% respectively. Across the full 27-year window we track, QQQ has the edge at +13.10% annualized vs -0.09%. 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 12.5% for KTF. 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 -60.4% for KTF 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 0.14. They move independently enough that combining them can meaningfully diversify a portfolio.
Holdings Overlap
KTF and QQQ share 0 holdings out of 226 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which performed better, KTF or QQQ?
Over the past year KTF returned +13.85% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), KTF annualized -0.09% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, KTF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.5% for KTF. Worst drawdown: KTF -60.4% vs QQQ -83.0%.
Should I hold both KTF and QQQ?
KTF and QQQ have a monthly-return correlation of 0.14, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KTF and QQQ?
KTF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 226 unique securities.
Which pays a higher dividend, KTF or QQQ?
KTF yields 8.22% while QQQ yields 0.41%, so KTF currently pays the higher dividend yield.
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