LFDR vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricLFDRQQQWinner
Expense Ratio0.25%0.18%
AUM$822,715.73$455.8B
Dividend Yield8.50%0.41%
Holdings17108
YTD Return-6.20%+17.85%
1Y Return-4.24%+26.45%
3Y Return (annualized)-+26.07%
5Y Return (annualized)-+15.16%
Volatility (annualized)8.2%30.6%
Max Drawdown-9.5%-83.0%
Fund FamilyStone Ridge Asset ManagementInvesco (US)
CategoryFixed IncomeEquity
InceptionJan 8, 2024Mar 10, 1999

LFDR vs QQQ Performance

LifeX Durable Income ETF (LFDR) 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 LFDR returned -4.24% while QQQ returned +26.45%. Year to date, LFDR is down 6.20% versus a gain of 17.85% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 8.2% for LFDR. 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 -9.5% for LFDR 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 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LFDR 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, LFDR currently yields 8.50% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

LFDR and QQQ share 0 holdings out of 117 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, LFDR or QQQ?

LFDR 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, LFDR or QQQ?

Over the past year LFDR returned -4.24% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), LFDR annualized -1.83% vs +13.09% for QQQ. Past performance does not guarantee future results.

Which is riskier, LFDR or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 8.2% for LFDR. Worst drawdown: LFDR -9.5% vs QQQ -83.0%.

Should I hold both LFDR and QQQ?

LFDR and QQQ have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LFDR and QQQ?

LFDR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 117 unique securities.

Which pays a higher dividend, LFDR or QQQ?

LFDR yields 8.50% while QQQ yields 0.41%, so LFDR currently pays the higher dividend yield.

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