NAC vs QQQ
Nuveen California Quality Municipal Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NAC offers more diversification with 346 holdings.
Side-by-Side Comparison
| Metric | NAC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 3.79% | 0.18% | |
| AUM | - | $496.3B | |
| Dividend Yield | 7.75% | 0.44% | |
| Holdings | 346 | 108 | |
| YTD Return | +3.62% | +16.23% | |
| 1Y Return | +13.43% | +26.23% | |
| 3Y Return (annualized) | +11.60% | +25.75% | |
| 5Y Return (annualized) | -0.47% | +14.78% | |
| Volatility (annualized) | 13.0% | 30.6% | |
| Max Drawdown | -53.7% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 26, 1999 | Mar 10, 1999 |
NAC vs QQQ Performance
Nuveen California Quality Municipal Income Fund (NAC) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NAC returned +13.43% while QQQ returned +26.23%. Year to date, NAC is up 3.62% versus a gain of 16.23% for QQQ.
Over three years, NAC compounded at +11.60% per year against +25.75% for QQQ; over five years the annualized figures are -0.47% and +14.78% respectively. Across the full 27-year window we track, QQQ has the edge at +13.02% annualized vs +0.23%. 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 13.0% for NAC. 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 -53.7% for NAC 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NAC charges 3.79% per year while QQQ charges 0.18%. On a $10,000 position that is $379 vs $18 annually, a gap of $361 per year that compounds over a long holding period. On income, NAC currently yields 7.75% against 0.44% for QQQ.
Holdings Overlap
NAC and QQQ share 0 holdings out of 242 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, NAC or QQQ?
NAC has an expense ratio of 3.79% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $361 per year of difference.
Which performed better, NAC or QQQ?
Over the past year NAC returned +13.43% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), NAC annualized +0.23% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, NAC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.0% for NAC. Worst drawdown: NAC -53.7% vs QQQ -83.0%.
Should I hold both NAC and QQQ?
NAC and QQQ have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NAC and QQQ?
NAC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 242 unique securities.
Which pays a higher dividend, NAC or QQQ?
NAC yields 7.75% while QQQ yields 0.44%, so NAC currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.