NCLO vs QQQ
Nuveen AA-BBB CLO ETF 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 108 holdings.
Side-by-Side Comparison
| Metric | NCLO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.26% | 0.18% | |
| AUM | $154M | $496.3B | |
| Dividend Yield | 5.78% | 0.44% | |
| Holdings | 103 | 108 | |
| YTD Return | +3.43% | +16.64% | |
| 1Y Return | +5.64% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 1.1% | 30.6% | |
| Max Drawdown | -3.1% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 10, 2024 | Mar 10, 1999 |
NCLO vs QQQ Performance
Nuveen AA-BBB CLO ETF (NCLO) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NCLO returned +5.64% while QQQ returned +27.27%. Year to date, NCLO is up 3.43% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 1.1% for NCLO. 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 -3.1% for NCLO 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NCLO charges 0.26% per year while QQQ charges 0.18%. On a $10,000 position that is $26 vs $18 annually, a gap of $8 per year that compounds over a long holding period. On income, NCLO currently yields 5.78% against 0.44% for QQQ.
Holdings Overlap
NCLO 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, NCLO or QQQ?
NCLO has an expense ratio of 0.26% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, NCLO or QQQ?
Over the past year NCLO returned +5.64% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), NCLO annualized +5.55% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, NCLO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 1.1% for NCLO. Worst drawdown: NCLO -3.1% vs QQQ -83.0%.
Should I hold both NCLO and QQQ?
NCLO and QQQ have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NCLO and QQQ?
NCLO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, NCLO or QQQ?
NCLO yields 5.78% while QQQ yields 0.44%, so NCLO currently pays the higher dividend yield.
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