NBFC vs QQQ
NBFC vs QQQ
Neuberger Berman Flexible Credit Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NBFC offers more diversification with 296 holdings.
Side-by-Side Comparison
| Metric | NBFC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $76M | $455.8B | |
| Dividend Yield | 7.29% | 0.41% | |
| Holdings | 557 | 108 | |
| YTD Return | +2.42% | +18.20% | |
| 1Y Return | +6.02% | +27.63% | |
| 3Y Return (annualized) | - | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 3.3% | 30.6% | |
| Max Drawdown | -4.0% | -83.0% | |
| Fund Family | Neuberger Berman | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 24, 2024 | Mar 10, 1999 |
NBFC vs QQQ Performance
Neuberger Berman Flexible Credit Income ETF (NBFC) is a ETF from Neuberger Berman and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NBFC returned +6.02% while QQQ returned +27.63%. Year to date, NBFC is up 2.42% versus a gain of 18.20% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.3% for NBFC. 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 -4.0% for NBFC 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NBFC charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, NBFC currently yields 7.29% against 0.41% for QQQ.
Holdings Overlap
NBFC and QQQ share 0 holdings out of 399 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, NBFC or QQQ?
NBFC has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, NBFC or QQQ?
Over the past year NBFC returned +6.02% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), NBFC annualized +7.91% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, NBFC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.3% for NBFC. Worst drawdown: NBFC -4.0% vs QQQ -83.0%.
Should I hold both NBFC and QQQ?
NBFC and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NBFC and QQQ?
NBFC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 399 unique securities.
Which pays a higher dividend, NBFC or QQQ?
NBFC yields 7.29% while QQQ yields 0.41%, so NBFC currently pays the higher dividend yield.
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