LBAY vs QQQ
Leatherback Long/Short Alternative Yield 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 | LBAY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.20% | 0.18% | |
| AUM | $18M | $496.3B | |
| Dividend Yield | 3.74% | 0.44% | |
| Holdings | 62 | 108 | |
| YTD Return | +13.29% | +17.30% | |
| 1Y Return | +12.67% | +24.93% | |
| 3Y Return (annualized) | +4.19% | +26.19% | |
| 5Y Return (annualized) | +6.04% | +15.34% | |
| Volatility (annualized) | 15.1% | 30.6% | |
| Max Drawdown | -16.0% | -83.0% | |
| Fund Family | Leatherback Asset Management | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Nov 16, 2020 | Mar 10, 1999 |
LBAY vs QQQ Performance
Leatherback Long/Short Alternative Yield ETF (LBAY) is a ETF from Leatherback Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LBAY returned +12.67% while QQQ returned +24.93%. Year to date, LBAY is up 13.29% versus a gain of 17.30% for QQQ.
Over three years, LBAY compounded at +4.19% per year against +26.19% for QQQ; over five years the annualized figures are +6.04% and +15.34% respectively. Across the full 6-year window we track, QQQ has the edge at +13.06% annualized vs +8.64%. 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 15.1% for LBAY. 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 -16.0% for LBAY 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LBAY charges 1.20% per year while QQQ charges 0.18%. On a $10,000 position that is $120 vs $18 annually, a gap of $102 per year that compounds over a long holding period. On income, LBAY currently yields 3.74% against 0.44% for QQQ.
Holdings Overlap
LBAY and QQQ share 12 holdings out of 148 unique holdings combined, representing a 0.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LBAY or QQQ?
LBAY has an expense ratio of 1.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $102 per year of difference.
Which performed better, LBAY or QQQ?
Over the past year LBAY returned +12.67% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), LBAY annualized +8.64% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, LBAY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.1% for LBAY. Worst drawdown: LBAY -16.0% vs QQQ -83.0%.
Should I hold both LBAY and QQQ?
LBAY and QQQ have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LBAY and QQQ?
LBAY and QQQ share 12 common holdings with a 0.8% weight overlap. Combined, they hold 148 unique securities.
Which pays a higher dividend, LBAY or QQQ?
LBAY yields 3.74% while QQQ yields 0.44%, so LBAY currently pays the higher dividend yield.
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