LOCT vs QQQ
Innovator Premium Income 15 Buffer ETF - October 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 103 holdings.
Side-by-Side Comparison
| Metric | LOCT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.18% | |
| AUM | $11M | $455.8B | |
| Dividend Yield | 5.15% | 0.41% | |
| Holdings | 8 | 108 | |
| YTD Return | +0.15% | +19.68% | |
| 1Y Return | +1.94% | +26.75% | |
| 3Y Return (annualized) | - | +26.25% | |
| 5Y Return (annualized) | - | +15.39% | |
| Volatility (annualized) | 6.1% | 30.6% | |
| Max Drawdown | -10.5% | -83.0% | |
| Fund Family | Innovator ETFs Trust | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 2, 2023 | Mar 10, 1999 |
LOCT vs QQQ Performance
Innovator Premium Income 15 Buffer ETF - October (LOCT) is a ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LOCT returned +1.94% while QQQ returned +26.75%. Year to date, LOCT is up 0.15% versus a gain of 19.68% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 6.1% for LOCT. 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 -10.5% for LOCT 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LOCT charges 0.79% per year while QQQ charges 0.18%. On a $10,000 position that is $79 vs $18 annually, a gap of $61 per year that compounds over a long holding period. On income, LOCT currently yields 5.15% against 0.41% for QQQ.
Holdings Overlap
LOCT and QQQ share 0 holdings out of 105 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, LOCT or QQQ?
LOCT has an expense ratio of 0.79% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, LOCT or QQQ?
Over the past year LOCT returned +1.94% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), LOCT annualized +0.20% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, LOCT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 6.1% for LOCT. Worst drawdown: LOCT -10.5% vs QQQ -83.0%.
Should I hold both LOCT and QQQ?
LOCT and QQQ have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LOCT and QQQ?
LOCT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, LOCT or QQQ?
LOCT yields 5.15% while QQQ yields 0.41%, so LOCT currently pays the higher dividend yield.
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