NPFD vs QQQ
Nuveen Variable Rate Preferred & Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NPFD offers more diversification with 150 holdings.
Side-by-Side Comparison
| Metric | NPFD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.83% | 0.18% | |
| AUM | - | $455.8B | |
| Dividend Yield | 9.84% | 0.41% | |
| Holdings | 189 | 108 | |
| YTD Return | +3.64% | +18.31% | |
| 1Y Return | +5.96% | +25.37% | |
| 3Y Return (annualized) | +15.04% | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 16.5% | 30.6% | |
| Max Drawdown | -39.2% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Dec 15, 2021 | Mar 10, 1999 |
NPFD vs QQQ Performance
Nuveen Variable Rate Preferred & Income Fund (NPFD) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NPFD returned +5.96% while QQQ returned +25.37%. Year to date, NPFD is up 3.64% versus a gain of 18.31% for QQQ.
Over three years, NPFD compounded at +15.04% per year against +25.79% for QQQ. Across the full 5-year window we track, QQQ has the edge at +13.10% annualized vs +2.32%. 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 16.5% for NPFD. 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 -39.2% for NPFD 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NPFD charges 0.83% per year while QQQ charges 0.18%. On a $10,000 position that is $83 vs $18 annually, a gap of $65 per year that compounds over a long holding period. On income, NPFD currently yields 9.84% against 0.41% for QQQ.
Holdings Overlap
NPFD and QQQ share 0 holdings out of 253 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, NPFD or QQQ?
NPFD has an expense ratio of 0.83% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, NPFD or QQQ?
Over the past year NPFD returned +5.96% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), NPFD annualized +2.32% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, NPFD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.5% for NPFD. Worst drawdown: NPFD -39.2% vs QQQ -83.0%.
Should I hold both NPFD and QQQ?
NPFD and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NPFD and QQQ?
NPFD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 253 unique securities.
Which pays a higher dividend, NPFD or QQQ?
NPFD yields 9.84% while QQQ yields 0.41%, so NPFD currently pays the higher dividend yield.
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