NZF vs QQQ
Nuveen Municipal Credit Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NZF offers more diversification with 671 holdings.
Side-by-Side Comparison
| Metric | NZF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 3.61% | 0.18% | |
| AUM | - | $496.3B | |
| Dividend Yield | 7.78% | 0.44% | |
| Holdings | 671 | 108 | |
| YTD Return | +1.76% | +16.64% | |
| 1Y Return | +12.18% | +27.27% | |
| 3Y Return (annualized) | +10.68% | +25.96% | |
| 5Y Return (annualized) | -0.83% | +14.54% | |
| Volatility (annualized) | 13.0% | 30.6% | |
| Max Drawdown | -53.7% | -83.0% | |
| Fund Family | Nuveen | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 25, 2001 | Mar 10, 1999 |
NZF vs QQQ Performance
Nuveen Municipal Credit Income Fund (NZF) is a ETF from Nuveen and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NZF returned +12.18% while QQQ returned +27.27%. Year to date, NZF is up 1.76% versus a gain of 16.64% for QQQ.
Over three years, NZF compounded at +10.68% per year against +25.96% for QQQ; over five years the annualized figures are -0.83% and +14.54% respectively. Across the full 25-year window we track, QQQ has the edge at +13.03% annualized vs +0.54%. 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 13.0% for NZF. 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 -53.7% for NZF 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NZF charges 3.61% per year while QQQ charges 0.18%. On a $10,000 position that is $361 vs $18 annually, a gap of $343 per year that compounds over a long holding period. On income, NZF currently yields 7.78% against 0.44% for QQQ.
Holdings Overlap
NZF and QQQ share 0 holdings out of 356 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, NZF or QQQ?
NZF has an expense ratio of 3.61% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $343 per year of difference.
Which performed better, NZF or QQQ?
Over the past year NZF returned +12.18% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (25 years), NZF annualized +0.54% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, NZF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.0% for NZF. Worst drawdown: NZF -53.7% vs QQQ -83.0%.
Should I hold both NZF and QQQ?
NZF and QQQ have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NZF and QQQ?
NZF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 356 unique securities.
Which pays a higher dividend, NZF or QQQ?
NZF yields 7.78% while QQQ yields 0.44%, so NZF currently pays the higher dividend yield.
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