LKOR vs QQQ
FlexShares Credit-Scored US Long Corporate Bond Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
LKOR has a lower expense ratio. QQQ delivered stronger 1-year returns. LKOR offers more diversification with 832 holdings.
Side-by-Side Comparison
| Metric | LKOR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.18% | |
| AUM | $30M | $496.3B | |
| Dividend Yield | 5.92% | 0.44% | |
| Holdings | 832 | 108 | |
| YTD Return | -5.64% | +16.23% | |
| 1Y Return | -4.13% | +26.23% | |
| 3Y Return (annualized) | +3.71% | +25.75% | |
| 5Y Return (annualized) | -3.99% | +14.78% | |
| Volatility (annualized) | 27.9% | 30.6% | |
| Max Drawdown | -42.4% | -83.0% | |
| Fund Family | Flexshares Trust | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 23, 2015 | Mar 10, 1999 |
LKOR vs QQQ Performance
FlexShares Credit-Scored US Long Corporate Bond Index Fund (LKOR) is a ETF from Flexshares Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LKOR returned -4.13% while QQQ returned +26.23%. Year to date, LKOR is down 5.64% versus a gain of 16.23% for QQQ.
Over three years, LKOR compounded at +3.71% per year against +25.75% for QQQ; over five years the annualized figures are -3.99% and +14.78% respectively. Across the full 11-year window we track, QQQ has the edge at +13.02% annualized vs +2.14%. 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 27.9% for LKOR. 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 -42.4% for LKOR 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
LKOR charges 0.15% per year while QQQ charges 0.18%. On a $10,000 position that is $15 vs $18 annually, a gap of $3 per year that compounds over a long holding period. On income, LKOR currently yields 5.92% against 0.44% for QQQ.
Holdings Overlap
LKOR and QQQ share 1 holdings out of 876 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in LKOR | Weight in QQQ | Difference |
|---|---|---|---|
| LRCX | 0.03% | 1.69% | 1.66% |
Frequently Asked Questions
Which is cheaper, LKOR or QQQ?
LKOR has an expense ratio of 0.15% while QQQ charges 0.18%. LKOR is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, LKOR or QQQ?
Over the past year LKOR returned -4.13% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), LKOR annualized +2.14% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, LKOR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 27.9% for LKOR. Worst drawdown: LKOR -42.4% vs QQQ -83.0%.
Should I hold both LKOR and QQQ?
LKOR 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 LKOR and QQQ?
LKOR and QQQ share 1 common holdings with a 0.0% weight overlap. Combined, they hold 876 unique securities.
Which pays a higher dividend, LKOR or QQQ?
LKOR yields 5.92% while QQQ yields 0.44%, so LKOR currently pays the higher dividend yield.
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