NMT vs QQQ

NMT vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NMT offers more diversification with 114 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: NMT

Side-by-Side Comparison

MetricNMTQQQWinner
Expense Ratio3.90%0.18%
AUM-$496.3B
Dividend Yield7.03%0.44%
Holdings114108
YTD Return+14.80%+17.07%
1Y Return+18.95%+26.39%
3Y Return (annualized)+14.27%+26.08%
5Y Return (annualized)+1.23%+15.18%
Volatility (annualized)11.7%30.6%
Max Drawdown-49.6%-83.0%
Fund FamilyNuveenInvesco (US)
CategoryTax PreferredEquity
InceptionMar 18, 1993Mar 10, 1999

NMT vs QQQ Performance

Nuveen Massachusetts Quality Municipal Income Fund (NMT) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NMT returned +18.95% while QQQ returned +26.39%. Year to date, NMT is up 14.80% versus a gain of 17.07% for QQQ.

Over three years, NMT compounded at +14.27% per year against +26.08% for QQQ; over five years the annualized figures are +1.23% and +15.18% respectively. Across the full 27-year window we track, QQQ has the edge at +13.05% annualized vs +0.55%. 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 11.7% for NMT. 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 -49.6% for NMT 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NMT charges 3.90% per year while QQQ charges 0.18%. On a $10,000 position that is $390 vs $18 annually, a gap of $372 per year that compounds over a long holding period. On income, NMT currently yields 7.03% against 0.44% for QQQ.

Holdings Overlap

0.0%overlap

NMT and QQQ share 0 holdings out of 130 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, NMT or QQQ?

NMT has an expense ratio of 3.90% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $372 per year of difference.

Which performed better, NMT or QQQ?

Over the past year NMT returned +18.95% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), NMT annualized +0.55% vs +13.05% for QQQ. Past performance does not guarantee future results.

Which is riskier, NMT or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 11.7% for NMT. Worst drawdown: NMT -49.6% vs QQQ -83.0%.

Should I hold both NMT and QQQ?

NMT and QQQ have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NMT and QQQ?

NMT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 130 unique securities.

Which pays a higher dividend, NMT or QQQ?

NMT yields 7.03% while QQQ yields 0.44%, so NMT currently pays the higher dividend yield.

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