NBB vs QQQ
Nuveen Taxable Municipal Income Fund 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 | NBB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.18% | |
| AUM | - | $455.8B | |
| Dividend Yield | 7.17% | 0.41% | |
| Holdings | 155 | 108 | |
| YTD Return | +2.18% | +17.46% | |
| 1Y Return | +5.01% | +26.02% | |
| 3Y Return (annualized) | +8.56% | +25.51% | |
| 5Y Return (annualized) | -1.06% | +15.12% | |
| Volatility (annualized) | 11.1% | 30.6% | |
| Max Drawdown | -33.5% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 28, 2010 | Mar 10, 1999 |
NBB vs QQQ Performance
Nuveen Taxable Municipal Income Fund (NBB) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NBB returned +5.01% while QQQ returned +26.02%. Year to date, NBB is up 2.18% versus a gain of 17.46% for QQQ.
Over three years, NBB compounded at +8.56% per year against +25.51% for QQQ; over five years the annualized figures are -1.06% and +15.12% respectively. Across the full 16-year window we track, QQQ has the edge at +13.08% annualized vs +0.79%. 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 11.1% for NBB. 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 -33.5% for NBB 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NBB charges 2.10% per year while QQQ charges 0.18%. On a $10,000 position that is $210 vs $18 annually, a gap of $192 per year that compounds over a long holding period. On income, NBB currently yields 7.17% against 0.41% for QQQ.
Holdings Overlap
NBB and QQQ share 0 holdings out of 104 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, NBB or QQQ?
NBB has an expense ratio of 2.10% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $192 per year of difference.
Which performed better, NBB or QQQ?
Over the past year NBB returned +5.01% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (16 years), NBB annualized +0.79% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, NBB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.1% for NBB. Worst drawdown: NBB -33.5% vs QQQ -83.0%.
Should I hold both NBB and QQQ?
NBB and QQQ have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NBB and QQQ?
NBB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, NBB or QQQ?
NBB yields 7.17% while QQQ yields 0.41%, so NBB 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.