NKX vs QQQ
Nuveen California 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. NKX offers more diversification with 214 holdings.
Side-by-Side Comparison
| Metric | NKX | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 4.02% | 0.18% | |
| AUM | - | $496.3B | |
| Dividend Yield | 7.71% | 0.44% | |
| Holdings | 214 | 108 | |
| YTD Return | +2.14% | +16.64% | |
| 1Y Return | +11.04% | +27.27% | |
| 3Y Return (annualized) | +10.60% | +25.96% | |
| 5Y Return (annualized) | -0.38% | +14.54% | |
| Volatility (annualized) | 13.5% | 30.6% | |
| Max Drawdown | -49.0% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 22, 2002 | Mar 10, 1999 |
NKX vs QQQ Performance
Nuveen California AMT-Free Quality Municipal Income Fund (NKX) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NKX returned +11.04% while QQQ returned +27.27%. Year to date, NKX is up 2.14% versus a gain of 16.64% for QQQ.
Over three years, NKX compounded at +10.60% per year against +25.96% for QQQ; over five years the annualized figures are -0.38% and +14.54% respectively. Across the full 24-year window we track, QQQ has the edge at +13.03% annualized vs +0.43%. 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 13.5% for NKX. 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 -49.0% for NKX 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NKX charges 4.02% per year while QQQ charges 0.18%. On a $10,000 position that is $402 vs $18 annually, a gap of $384 per year that compounds over a long holding period. On income, NKX currently yields 7.71% against 0.44% for QQQ.
Holdings Overlap
NKX and QQQ share 0 holdings out of 203 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, NKX or QQQ?
NKX has an expense ratio of 4.02% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $384 per year of difference.
Which performed better, NKX or QQQ?
Over the past year NKX returned +11.04% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (24 years), NKX annualized +0.43% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, NKX or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.5% for NKX. Worst drawdown: NKX -49.0% vs QQQ -83.0%.
Should I hold both NKX and QQQ?
NKX and QQQ have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NKX and QQQ?
NKX and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 203 unique securities.
Which pays a higher dividend, NKX or QQQ?
NKX yields 7.71% while QQQ yields 0.44%, so NKX currently pays the higher dividend yield.
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