NVBW vs QQQ

NVBW vs QQQ
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Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricNVBWQQQWinner
Expense Ratio0.74%0.18%
AUM$96M$496.3B
Dividend Yield0.00%0.44%
Holdings5108
YTD Return+7.01%+16.23%
1Y Return+10.49%+26.23%
3Y Return (annualized)+9.16%+25.75%
5Y Return (annualized)-+14.78%
Volatility (annualized)5.6%30.6%
Max Drawdown-8.4%-83.0%
Fund FamilyAllianzIMInvesco (US)
CategoryAlternativeEquity
InceptionOct 31, 2022Mar 10, 1999

NVBW vs QQQ Performance

AllianzIM US Equity Buffer20 Nov ETF (NVBW) is a ETF from AllianzIM and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NVBW returned +10.49% while QQQ returned +26.23%. Year to date, NVBW is up 7.01% versus a gain of 16.23% for QQQ.

Over three years, NVBW compounded at +9.16% per year against +25.75% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.02% annualized vs +10.16%. 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 5.6% for NVBW. 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 -8.4% for NVBW 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

NVBW charges 0.74% per year while QQQ charges 0.18%. On a $10,000 position that is $74 vs $18 annually, a gap of $56 per year that compounds over a long holding period. On income, NVBW currently yields 0.00% against 0.44% for QQQ.

Frequently Asked Questions

Which is cheaper, NVBW or QQQ?

NVBW has an expense ratio of 0.74% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $56 per year of difference.

Which performed better, NVBW or QQQ?

Over the past year NVBW returned +10.49% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), NVBW annualized +10.16% vs +13.02% for QQQ. Past performance does not guarantee future results.

Which is riskier, NVBW or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 5.6% for NVBW. Worst drawdown: NVBW -8.4% vs QQQ -83.0%.

Should I hold both NVBW and QQQ?

NVBW and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, NVBW or QQQ?

NVBW yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.

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