NDMO vs QQQ

NDMO vs QQQ

Which is better, NDMO or QQQ?

Municipal Bond against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.

Lower Fees: QQQHigher Returns: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricNDMOQQQ
Expense Ratio2.92%0.18%Best
AUM-$483.5B
Dividend Yield7.27%0.44%
Holdings543107
YTD Return-4.22%+17.95%Best
1Y Return-6.04%+21.77%Best
3Y Return (annualized)+4.03%+25.63%Best
5Y Return (annualized)-4.09%+15.24%Best
Volatility (annualized)18.3%Best20.1%
Max Drawdown-42.5%-35.1%Best
$10,000 over 5 years$8,116$20,324Best
Fund FamilyNuveenInvesco (US)
CategoryTax PreferredEquity
StyleMunicipal BondLarge Cap Growth
InceptionAug 26, 2020Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Aug 27, 2020 to Sep 18, 2026 (6.1 years).

NDMO vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.1 years both funds cover.

NDMO vs QQQ Performance

Nuveen Dynamic Municipal Opportunities Fund (NDMO) is an ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year NDMO returned -6.04% while QQQ returned +21.77%. Year to date, NDMO is down 4.22% versus a gain of 17.95% for QQQ.

Over three years, NDMO compounded at +4.03% per year against +25.63% for QQQ; over five years the annualized figures are -4.09% and +15.24% respectively. Across the full 6-year window we track, QQQ has the edge at +16.79% annualized vs -1.71%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 18.3% 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 -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.58. They move together some of the time, and apart the rest.

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 7.27% against 0.44% for QQQ.

You are not choosing between two funds in isolation.

Whichever of NDMO and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

NDMOQQQ

Free for up to 10 holdings. No account needed.

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, by $274 a year on a $10,000 investment.

Which performed better, NDMO or QQQ?

Over the past year NDMO returned -6.04% vs +21.77% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), NDMO annualized -1.71% vs +16.79% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, NDMO or QQQ?

QQQ has been the more volatile fund at 20.1% annualized versus 18.3% for NDMO. Worst drawdown: NDMO -42.5% vs QQQ -35.1%.

Should I hold both NDMO and QQQ?

NDMO and QQQ have a monthly-return correlation of 0.58, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, NDMO or QQQ?

NDMO yields 7.27% while QQQ yields 0.44%, so NDMO currently pays the higher dividend yield.

Is QQQ better than NDMO?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.