NFJ vs QQQ
Virtus Dividend, Interest & Premium Strategy Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. NFJ delivered stronger 1-year returns. NFJ offers more diversification with 182 holdings.
Side-by-Side Comparison
| Metric | NFJ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.18% | |
| AUM | $1.6B | $496.3B | |
| Dividend Yield | 7.44% | 0.44% | |
| Holdings | 182 | 108 | |
| YTD Return | +25.46% | +16.23% | |
| 1Y Return | +34.13% | +26.23% | |
| 3Y Return (annualized) | +18.89% | +25.75% | |
| 5Y Return (annualized) | +9.02% | +14.78% | |
| Volatility (annualized) | 17.5% | 30.6% | |
| Max Drawdown | -70.3% | -83.0% | |
| Fund Family | Virtus Investment Partners | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 28, 2005 | Mar 10, 1999 |
NFJ vs QQQ Performance
Virtus Dividend, Interest & Premium Strategy Fund (NFJ) is a ETF from Virtus Investment Partners and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NFJ returned +34.13% while QQQ returned +26.23%. Year to date, NFJ is up 25.46% versus a gain of 16.23% for QQQ.
Over three years, NFJ compounded at +18.89% per year against +25.75% for QQQ; over five years the annualized figures are +9.02% and +14.78% respectively. Across the full 22-year window we track, QQQ has the edge at +13.02% annualized vs -0.11%. 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 17.5% for NFJ. 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 -70.3% for NFJ 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NFJ charges 0.96% per year while QQQ charges 0.18%. On a $10,000 position that is $96 vs $18 annually, a gap of $78 per year that compounds over a long holding period. On income, NFJ currently yields 7.44% against 0.44% for QQQ.
Holdings Overlap
NFJ and QQQ share 15 holdings out of 240 unique holdings combined, representing a 12.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, NFJ or QQQ?
NFJ has an expense ratio of 0.96% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $78 per year of difference.
Which performed better, NFJ or QQQ?
Over the past year NFJ returned +34.13% vs +26.23% for QQQ, so NFJ leads on 1-year performance. Over the longest common window we track (22 years), NFJ annualized -0.11% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, NFJ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.5% for NFJ. Worst drawdown: NFJ -70.3% vs QQQ -83.0%.
Should I hold both NFJ and QQQ?
NFJ and QQQ have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NFJ and QQQ?
NFJ and QQQ share 15 common holdings with a 12.5% weight overlap. Combined, they hold 240 unique securities.
Which pays a higher dividend, NFJ or QQQ?
NFJ yields 7.44% while QQQ yields 0.44%, so NFJ currently pays the higher dividend yield.
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