NAZ vs QQQ
Nuveen Arizona Quality Municipal Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NAZ offers more diversification with 219 holdings.
Side-by-Side Comparison
| Metric | NAZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 3.72% | 0.18% | |
| AUM | - | $496.3B | |
| Dividend Yield | 6.94% | 0.44% | |
| Holdings | 219 | 108 | |
| YTD Return | +8.09% | +16.64% | |
| 1Y Return | +11.91% | +27.27% | |
| 3Y Return (annualized) | +13.11% | +25.96% | |
| 5Y Return (annualized) | +0.07% | +14.54% | |
| Volatility (annualized) | 12.3% | 30.6% | |
| Max Drawdown | -49.5% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 19, 1992 | Mar 10, 1999 |
NAZ vs QQQ Performance
Nuveen Arizona Quality Municipal Income Fund (NAZ) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NAZ returned +11.91% while QQQ returned +27.27%. Year to date, NAZ is up 8.09% versus a gain of 16.64% for QQQ.
Over three years, NAZ compounded at +13.11% per year against +25.96% for QQQ; over five years the annualized figures are +0.07% and +14.54% respectively. Across the full 27-year window we track, QQQ has the edge at +13.03% annualized vs +0.65%. 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 12.3% for NAZ. 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 -49.5% for NAZ 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 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NAZ charges 3.72% per year while QQQ charges 0.18%. On a $10,000 position that is $372 vs $18 annually, a gap of $354 per year that compounds over a long holding period. On income, NAZ currently yields 6.94% against 0.44% for QQQ.
Holdings Overlap
NAZ and QQQ share 0 holdings out of 141 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, NAZ or QQQ?
NAZ has an expense ratio of 3.72% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $354 per year of difference.
Which performed better, NAZ or QQQ?
Over the past year NAZ returned +11.91% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), NAZ annualized +0.65% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, NAZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 12.3% for NAZ. Worst drawdown: NAZ -49.5% vs QQQ -83.0%.
Should I hold both NAZ and QQQ?
NAZ and QQQ have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NAZ and QQQ?
NAZ and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 141 unique securities.
Which pays a higher dividend, NAZ or QQQ?
NAZ yields 6.94% while QQQ yields 0.44%, so NAZ currently pays the higher dividend yield.
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