NPFI vs QQQ
Nuveen Preferred and Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NPFI offers more diversification with 163 holdings.
Side-by-Side Comparison
| Metric | NPFI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.18% | |
| AUM | $174M | $496.3B | |
| Dividend Yield | 6.49% | 0.44% | |
| Holdings | 163 | 108 | |
| YTD Return | +2.12% | +16.23% | |
| 1Y Return | +5.38% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 3.3% | 30.6% | |
| Max Drawdown | -3.2% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Mar 5, 2024 | Mar 10, 1999 |
NPFI vs QQQ Performance
Nuveen Preferred and Income ETF (NPFI) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NPFI returned +5.38% while QQQ returned +26.23%. Year to date, NPFI is up 2.12% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 3.3% for NPFI. 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 -3.2% for NPFI 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NPFI charges 0.56% per year while QQQ charges 0.18%. On a $10,000 position that is $56 vs $18 annually, a gap of $38 per year that compounds over a long holding period. On income, NPFI currently yields 6.49% against 0.44% for QQQ.
Holdings Overlap
NPFI and QQQ share 0 holdings out of 218 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, NPFI or QQQ?
NPFI has an expense ratio of 0.56% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $38 per year of difference.
Which performed better, NPFI or QQQ?
Over the past year NPFI returned +5.38% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), NPFI annualized +7.61% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, NPFI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 3.3% for NPFI. Worst drawdown: NPFI -3.2% vs QQQ -83.0%.
Should I hold both NPFI and QQQ?
NPFI and QQQ have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NPFI and QQQ?
NPFI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 218 unique securities.
Which pays a higher dividend, NPFI or QQQ?
NPFI yields 6.49% while QQQ yields 0.44%, so NPFI currently pays the higher dividend yield.
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