LONZ vs QQQ
PIMCO Senior Loan Active Exchange-Traded Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. LONZ offers more diversification with 307 holdings.
Side-by-Side Comparison
| Metric | LONZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.63% | 0.18% | |
| AUM | $599M | $496.3B | |
| Dividend Yield | 9.12% | 0.44% | |
| Holdings | 307 | 108 | |
| YTD Return | +3.08% | +16.64% | |
| 1Y Return | +5.96% | +27.27% | |
| 3Y Return (annualized) | +7.68% | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 3.1% | 30.6% | |
| Max Drawdown | -4.2% | -83.0% | |
| Fund Family | PIMCO (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Jun 8, 2022 | Mar 10, 1999 |
LONZ vs QQQ Performance
PIMCO Senior Loan Active Exchange-Traded Fund (LONZ) is a ETF from PIMCO (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LONZ returned +5.96% while QQQ returned +27.27%. Year to date, LONZ is up 3.08% versus a gain of 16.64% for QQQ.
Over three years, LONZ compounded at +7.68% per year against +25.96% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +7.61%. 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 3.1% for LONZ. 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 -4.2% for LONZ 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LONZ charges 0.63% per year while QQQ charges 0.18%. On a $10,000 position that is $63 vs $18 annually, a gap of $45 per year that compounds over a long holding period. On income, LONZ currently yields 9.12% against 0.44% for QQQ.
Holdings Overlap
LONZ and QQQ share 0 holdings out of 214 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, LONZ or QQQ?
LONZ has an expense ratio of 0.63% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $45 per year of difference.
Which performed better, LONZ or QQQ?
Over the past year LONZ returned +5.96% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), LONZ annualized +7.61% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, LONZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.1% for LONZ. Worst drawdown: LONZ -4.2% vs QQQ -83.0%.
Should I hold both LONZ and QQQ?
LONZ and QQQ have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LONZ and QQQ?
LONZ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 214 unique securities.
Which pays a higher dividend, LONZ or QQQ?
LONZ yields 9.12% while QQQ yields 0.44%, so LONZ currently pays the higher dividend yield.
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