NMI vs QQQ
Nuveen Municipal Income Fund Inc. vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NMI offers more diversification with 220 holdings.
Side-by-Side Comparison
| Metric | NMI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.18% | |
| AUM | - | $496.3B | |
| Dividend Yield | 4.65% | 0.44% | |
| Holdings | 220 | 108 | |
| YTD Return | +8.93% | +16.23% | |
| 1Y Return | +13.39% | +26.23% | |
| 3Y Return (annualized) | +8.56% | +25.75% | |
| 5Y Return (annualized) | +1.80% | +14.78% | |
| Volatility (annualized) | 11.0% | 30.6% | |
| Max Drawdown | -34.4% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 20, 1988 | Mar 10, 1999 |
NMI vs QQQ Performance
Nuveen Municipal Income Fund Inc. (NMI) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NMI returned +13.39% while QQQ returned +26.23%. Year to date, NMI is up 8.93% versus a gain of 16.23% for QQQ.
Over three years, NMI compounded at +8.56% per year against +25.75% for QQQ; over five years the annualized figures are +1.80% and +14.78% respectively. Across the full 27-year window we track, QQQ has the edge at +13.02% annualized vs +0.31%. 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 11.0% for NMI. 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 -34.4% for NMI 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 0.06. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NMI charges 0.73% per year while QQQ charges 0.18%. On a $10,000 position that is $73 vs $18 annually, a gap of $55 per year that compounds over a long holding period. On income, NMI currently yields 4.65% against 0.44% for QQQ.
Holdings Overlap
NMI and QQQ share 0 holdings out of 197 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, NMI or QQQ?
NMI has an expense ratio of 0.73% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $55 per year of difference.
Which performed better, NMI or QQQ?
Over the past year NMI returned +13.39% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), NMI annualized +0.31% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, NMI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.0% for NMI. Worst drawdown: NMI -34.4% vs QQQ -83.0%.
Should I hold both NMI and QQQ?
NMI and QQQ have a monthly-return correlation of 0.06, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NMI and QQQ?
NMI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 197 unique securities.
Which pays a higher dividend, NMI or QQQ?
NMI yields 4.65% while QQQ yields 0.44%, so NMI currently pays the higher dividend yield.
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