NJAN vs QQQ

NJAN vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricNJANQQQWinner
Expense Ratio0.79%0.18%
AUM$353M$496.3B
Dividend Yield0.00%0.44%
Holdings6108
YTD Return+8.64%+16.64%
1Y Return+15.40%+27.27%
3Y Return (annualized)+14.01%+25.96%
5Y Return (annualized)+7.56%+14.54%
Volatility (annualized)10.1%30.6%
Max Drawdown-20.7%-83.0%
Fund FamilyInnovator ETFs TrustInvesco (US)
CategoryAlternativeEquity
InceptionJan 1, 2020Mar 10, 1999

NJAN vs QQQ Performance

Innovator Growth 100 Power Buffer ETF - January (NJAN) is a ETF from Innovator ETFs Trust and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NJAN returned +15.40% while QQQ returned +27.27%. Year to date, NJAN is up 8.64% versus a gain of 16.64% for QQQ.

Over three years, NJAN compounded at +14.01% per year against +25.96% for QQQ; over five years the annualized figures are +7.56% and +14.54% respectively. Across the full 7-year window we track, QQQ has the edge at +13.03% annualized vs +8.27%. 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 10.1% for NJAN. 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 -20.7% for NJAN 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 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

NJAN charges 0.79% per year while QQQ charges 0.18%. On a $10,000 position that is $79 vs $18 annually, a gap of $61 per year that compounds over a long holding period. On income, NJAN currently yields 0.00% against 0.44% for QQQ.

Frequently Asked Questions

Which is cheaper, NJAN or QQQ?

NJAN has an expense ratio of 0.79% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $61 per year of difference.

Which performed better, NJAN or QQQ?

Over the past year NJAN returned +15.40% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), NJAN annualized +8.27% vs +13.03% for QQQ. Past performance does not guarantee future results.

Which is riskier, NJAN or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 10.1% for NJAN. Worst drawdown: NJAN -20.7% vs QQQ -83.0%.

Should I hold both NJAN and QQQ?

NJAN and QQQ have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, NJAN or QQQ?

NJAN yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.

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