NDMO vs QQQ
Nuveen Dynamic Municipal Opportunities Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NDMO offers more diversification with 198 holdings.
Side-by-Side Comparison
| Metric | NDMO | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.92% | 0.18% | |
| AUM | - | $455.8B | |
| Dividend Yield | 7.09% | 0.41% | |
| Holdings | 543 | 108 | |
| YTD Return | +2.78% | +17.46% | |
| 1Y Return | +9.49% | +26.02% | |
| 3Y Return (annualized) | +4.49% | +25.51% | |
| 5Y Return (annualized) | -3.86% | +15.12% | |
| Volatility (annualized) | 18.2% | 30.6% | |
| Max Drawdown | -42.5% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 26, 2020 | Mar 10, 1999 |
NDMO vs QQQ Performance
Nuveen Dynamic Municipal Opportunities Fund (NDMO) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NDMO returned +9.49% while QQQ returned +26.02%. Year to date, NDMO is up 2.78% versus a gain of 17.46% for QQQ.
Over three years, NDMO compounded at +4.49% per year against +25.51% for QQQ; over five years the annualized figures are -3.86% and +15.12% respectively. Across the full 6-year window we track, QQQ has the edge at +13.08% annualized vs -0.57%. 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 18.2% for NDMO. 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 -42.5% for NDMO 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NDMO charges 2.92% per year while QQQ charges 0.18%. On a $10,000 position that is $292 vs $18 annually, a gap of $274 per year that compounds over a long holding period. On income, NDMO currently yields 7.09% against 0.41% for QQQ.
Holdings Overlap
NDMO and QQQ share 0 holdings out of 301 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, NDMO or QQQ?
NDMO has an expense ratio of 2.92% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $274 per year of difference.
Which performed better, NDMO or QQQ?
Over the past year NDMO returned +9.49% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), NDMO annualized -0.57% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, NDMO or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.2% for NDMO. Worst drawdown: NDMO -42.5% vs QQQ -83.0%.
Should I hold both NDMO and QQQ?
NDMO and QQQ have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NDMO and QQQ?
NDMO and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 301 unique securities.
Which pays a higher dividend, NDMO or QQQ?
NDMO yields 7.09% while QQQ yields 0.41%, so NDMO currently pays the higher dividend yield.
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