LFAO vs QQQ
LifeX 2055 Longevity Income ETF vs Invesco QQQ Trust, Series 1
Which is better, LFAO or QQQ?
Long Term Government Bond against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | LFAO | QQQ |
|---|---|---|
| Expense Ratio | 0.25% | 0.18%Best |
| AUM | $3M | $498.6B |
| Dividend Yield | 11.08% | 0.42% |
| Holdings | 24 | 321 |
| YTD Return | -10.61% | +22.67%Best |
| 1Y Return | -11.15% | +24.33%Best |
| 3Y Return (annualized) | - | +29.05% |
| 5Y Return (annualized) | - | +17.00% |
| Volatility (annualized) | 7.9%Best | 18.1% |
| Max Drawdown | -13.1%Best | -22.8% |
| $10,000 over 2 years | $8,720 | $15,866Best |
| Fund Family | Stone Ridge Asset Management | Invesco (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Government Bond | Large Cap Growth |
| Inception | Jan 8, 2024 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 2 years row, are measured over the window both funds cover: Sep 16, 2024 to Oct 2, 2026 (2 years).
LFAO vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2 years both funds cover.
LFAO vs QQQ Performance
LifeX 2055 Longevity Income ETF (LFAO) is an ETF from Stone Ridge Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year LFAO returned -11.15% while QQQ returned +24.33%. Year to date, LFAO is down 10.61% versus a gain of 22.67% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.1% compared with 7.9% for LFAO. 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 -13.1% for LFAO and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.10. They move largely independently of each other.
Fees and Cost Over Time
LFAO charges 0.25% per year while QQQ charges 0.18%. On a $10,000 position that is $25 vs $18 annually, a gap of $7 per year that compounds over a long holding period. On income, LFAO currently yields 11.08% against 0.42% for QQQ.
Holdings Overlap
We hold position weights for 17 holdings in LFAO and 102 in QQQ, totalling 87.6% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 17 positions we hold weights for in LFAO and 102 in QQQ, against full books of 24 and 321.
You are not choosing between two funds in isolation.
Whichever of LFAO and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, LFAO or QQQ?
LFAO has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, LFAO or QQQ?
Over the past year LFAO returned -11.15% vs +24.33% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), LFAO annualized -6.62% vs +25.96% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, LFAO or QQQ?
QQQ has been the more volatile fund at 18.1% annualized versus 7.9% for LFAO. Worst drawdown: LFAO -13.1% vs QQQ -22.8%.
Should I hold both LFAO and QQQ?
LFAO and QQQ have a monthly-return correlation of 0.10, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, LFAO or QQQ?
LFAO yields 11.08% while QQQ yields 0.42%, so LFAO currently pays the higher dividend yield.
Is QQQ better than LFAO?
QQQ has a lower expense ratio. QQQ led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.