NXP vs QQQ
Nuveen Select Tax Free Income Portfolio vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NXP offers more diversification with 196 holdings.
Side-by-Side Comparison
| Metric | NXP | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.24% | 0.18% | |
| AUM | - | $455.8B | |
| Dividend Yield | 4.44% | 0.41% | |
| Holdings | 433 | 108 | |
| YTD Return | +4.77% | +19.68% | |
| 1Y Return | +7.04% | +26.75% | |
| 3Y Return (annualized) | +4.23% | +26.25% | |
| 5Y Return (annualized) | +0.10% | +15.39% | |
| Volatility (annualized) | 8.9% | 30.6% | |
| Max Drawdown | -30.0% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 19, 1992 | Mar 10, 1999 |
NXP vs QQQ Performance
Nuveen Select Tax Free Income Portfolio (NXP) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NXP returned +7.04% while QQQ returned +26.75%. Year to date, NXP is up 4.77% versus a gain of 19.68% for QQQ.
Over three years, NXP compounded at +4.23% per year against +26.25% for QQQ; over five years the annualized figures are +0.10% and +15.39% respectively. Across the full 27-year window we track, QQQ has the edge at +13.15% 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 8.9% for NXP. 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 -30.0% for NXP 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 0.12. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NXP charges 0.24% per year while QQQ charges 0.18%. On a $10,000 position that is $24 vs $18 annually, a gap of $6 per year that compounds over a long holding period. On income, NXP currently yields 4.44% against 0.41% for QQQ.
Holdings Overlap
NXP and QQQ share 0 holdings out of 299 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, NXP or QQQ?
NXP has an expense ratio of 0.24% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, NXP or QQQ?
Over the past year NXP returned +7.04% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), NXP annualized +0.55% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, NXP or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.9% for NXP. Worst drawdown: NXP -30.0% vs QQQ -83.0%.
Should I hold both NXP and QQQ?
NXP and QQQ have a monthly-return correlation of 0.12, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NXP and QQQ?
NXP and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 299 unique securities.
Which pays a higher dividend, NXP or QQQ?
NXP yields 4.44% while QQQ yields 0.41%, so NXP currently pays the higher dividend yield.
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