LFAO vs QQQ
LifeX 2055 Longevity Income 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 | LFAO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.25% | 0.18% | |
| AUM | $5M | $496.3B | |
| Dividend Yield | 11.58% | 0.44% | |
| Holdings | 27 | 108 | |
| YTD Return | -5.93% | +19.52% | |
| 1Y Return | -3.50% | +26.68% | |
| 3Y Return (annualized) | - | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 7.6% | 30.6% | |
| Max Drawdown | -10.1% | -83.0% | |
| Fund Family | Stone Ridge Asset Management | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 8, 2024 | Mar 10, 1999 |
LFAO vs QQQ Performance
LifeX 2055 Longevity Income ETF (LFAO) is a ETF from Stone Ridge Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LFAO returned -3.50% while QQQ returned +26.68%. Year to date, LFAO is down 5.93% versus a gain of 19.52% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 7.6% 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 -10.1% for LFAO 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 0.13. They move independently enough that combining them can meaningfully diversify a portfolio.
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 11.58% against 0.44% for QQQ.
Holdings Overlap
LFAO and QQQ share 0 holdings out of 122 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, LFAO or QQQ?
LFAO has an expense ratio of 0.25% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, LFAO or QQQ?
Over the past year LFAO returned -3.50% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), LFAO annualized -4.55% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, LFAO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.6% for LFAO. Worst drawdown: LFAO -10.1% vs QQQ -83.0%.
Should I hold both LFAO and QQQ?
LFAO and QQQ have a monthly-return correlation of 0.13, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LFAO and QQQ?
LFAO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 122 unique securities.
Which pays a higher dividend, LFAO or QQQ?
LFAO yields 11.58% while QQQ yields 0.44%, so LFAO currently pays the higher dividend yield.
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