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

MetricLFEQQQQWinner
Expense Ratio0.58%0.18%
AUM$28M$455.8B
Dividend Yield0.82%0.41%
Holdings3108
YTD Return+13.44%+18.20%
1Y Return+23.08%+27.63%
3Y Return (annualized)+17.27%+25.54%
5Y Return (annualized)+9.43%+15.12%
Volatility (annualized)14.8%30.6%
Max Drawdown-35.2%-83.0%
Fund FamilyVanEckInvesco (US)
CategoryEquityEquity
InceptionOct 4, 2017Mar 10, 1999

LFEQ vs QQQ Performance

VanEck Long/Flat Trend ETF (LFEQ) is a ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LFEQ returned +23.08% while QQQ returned +27.63%. Year to date, LFEQ is up 13.44% versus a gain of 18.20% for QQQ.

Over three years, LFEQ compounded at +17.27% per year against +25.54% for QQQ; over five years the annualized figures are +9.43% and +15.12% respectively. Across the full 9-year window we track, QQQ has the edge at +13.11% annualized vs +11.93%. 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 14.8% for LFEQ. 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 -35.2% for LFEQ 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 0.86. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

LFEQ charges 0.58% per year while QQQ charges 0.18%. On a $10,000 position that is $58 vs $18 annually, a gap of $40 per year that compounds over a long holding period. On income, LFEQ currently yields 0.82% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

LFEQ and QQQ share 0 holdings out of 104 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, LFEQ or QQQ?

LFEQ has an expense ratio of 0.58% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $40 per year of difference.

Which performed better, LFEQ or QQQ?

Over the past year LFEQ returned +23.08% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), LFEQ annualized +11.93% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, LFEQ or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 14.8% for LFEQ. Worst drawdown: LFEQ -35.2% vs QQQ -83.0%.

Should I hold both LFEQ and QQQ?

LFEQ and QQQ have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LFEQ and QQQ?

LFEQ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, LFEQ or QQQ?

LFEQ yields 0.82% while QQQ yields 0.41%, so LFEQ currently pays the higher dividend yield.

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