NAD vs QQQ
Nuveen Quality Municipal Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NAD offers more diversification with 1,159 holdings.
Side-by-Side Comparison
| Metric | NAD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 3.74% | 0.18% | |
| AUM | - | $496.3B | |
| Dividend Yield | 7.30% | 0.44% | |
| Holdings | 1,159 | 108 | |
| YTD Return | +1.61% | +16.23% | |
| 1Y Return | +12.15% | +26.23% | |
| 3Y Return (annualized) | +10.08% | +25.75% | |
| 5Y Return (annualized) | -0.57% | +14.78% | |
| Volatility (annualized) | 12.2% | 30.6% | |
| Max Drawdown | -51.9% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 26, 1999 | Mar 10, 1999 |
NAD vs QQQ Performance
Nuveen Quality Municipal Income Fund (NAD) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NAD returned +12.15% while QQQ returned +26.23%. Year to date, NAD is up 1.61% versus a gain of 16.23% for QQQ.
Over three years, NAD compounded at +10.08% per year against +25.75% for QQQ; over five years the annualized figures are -0.57% and +14.78% respectively. Across the full 27-year window we track, QQQ has the edge at +13.02% annualized vs +0.27%. 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 12.2% for NAD. 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 -51.9% for NAD 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NAD charges 3.74% per year while QQQ charges 0.18%. On a $10,000 position that is $374 vs $18 annually, a gap of $356 per year that compounds over a long holding period. On income, NAD currently yields 7.30% against 0.44% for QQQ.
Holdings Overlap
NAD and QQQ share 0 holdings out of 533 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, NAD or QQQ?
NAD has an expense ratio of 3.74% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $356 per year of difference.
Which performed better, NAD or QQQ?
Over the past year NAD returned +12.15% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), NAD annualized +0.27% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, NAD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.2% for NAD. Worst drawdown: NAD -51.9% vs QQQ -83.0%.
Should I hold both NAD and QQQ?
NAD and QQQ have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NAD and QQQ?
NAD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 533 unique securities.
Which pays a higher dividend, NAD or QQQ?
NAD yields 7.30% while QQQ yields 0.44%, so NAD currently pays the higher dividend yield.
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