NEA vs QQQ
Nuveen AMT-Free Quality Municipal Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NEA offers more diversification with 1,108 holdings.
Side-by-Side Comparison
| Metric | NEA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 3.53% | 0.18% | |
| AUM | - | $496.3B | |
| Dividend Yield | 7.34% | 0.44% | |
| Holdings | 1,108 | 108 | |
| YTD Return | +0.94% | +16.64% | |
| 1Y Return | +11.61% | +27.27% | |
| 3Y Return (annualized) | +9.90% | +25.96% | |
| 5Y Return (annualized) | -1.02% | +14.54% | |
| Volatility (annualized) | 13.1% | 30.6% | |
| Max Drawdown | -48.1% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 21, 2002 | Mar 10, 1999 |
NEA vs QQQ Performance
Nuveen AMT-Free Quality Municipal Income Fund (NEA) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NEA returned +11.61% while QQQ returned +27.27%. Year to date, NEA is up 0.94% versus a gain of 16.64% for QQQ.
Over three years, NEA compounded at +9.90% per year against +25.96% for QQQ; over five years the annualized figures are -1.02% and +14.54% respectively. Across the full 24-year window we track, QQQ has the edge at +13.03% annualized vs +0.13%. 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 13.1% for NEA. 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 -48.1% for NEA 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NEA charges 3.53% per year while QQQ charges 0.18%. On a $10,000 position that is $353 vs $18 annually, a gap of $335 per year that compounds over a long holding period. On income, NEA currently yields 7.34% against 0.44% for QQQ.
Holdings Overlap
NEA and QQQ share 0 holdings out of 507 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, NEA or QQQ?
NEA has an expense ratio of 3.53% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $335 per year of difference.
Which performed better, NEA or QQQ?
Over the past year NEA returned +11.61% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), NEA annualized +0.13% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, NEA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.1% for NEA. Worst drawdown: NEA -48.1% vs QQQ -83.0%.
Should I hold both NEA and QQQ?
NEA and QQQ have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NEA and QQQ?
NEA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, NEA or QQQ?
NEA yields 7.34% while QQQ yields 0.44%, so NEA currently pays the higher dividend yield.
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