QAI vs QQQ
NYLI Hedge Multi-Strategy Tracker ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QAI offers more diversification with 129 holdings.
Side-by-Side Comparison
| Metric | QAI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.88% | 0.18% | |
| AUM | $1.0B | $496.3B | |
| Dividend Yield | 1.40% | 0.44% | |
| Holdings | 129 | 108 | |
| YTD Return | +8.91% | +19.52% | |
| 1Y Return | +13.40% | +26.68% | |
| 3Y Return (annualized) | +8.91% | +26.64% | |
| 5Y Return (annualized) | +4.42% | +15.36% | |
| Volatility (annualized) | 5.2% | 30.6% | |
| Max Drawdown | -14.9% | -83.0% | |
| Fund Family | INDEXIQ ETF TRUST | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 25, 2009 | Mar 10, 1999 |
QAI vs QQQ Performance
NYLI Hedge Multi-Strategy Tracker ETF (QAI) is a ETF from INDEXIQ ETF TRUST and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year QAI returned +13.40% while QQQ returned +26.68%. Year to date, QAI is up 8.91% versus a gain of 19.52% for QQQ.
Over three years, QAI compounded at +8.91% per year against +26.64% for QQQ; over five years the annualized figures are +4.42% and +15.36% respectively. Across the full 17-year window we track, QQQ has the edge at +13.14% annualized vs +3.46%. 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 5.2% for QAI. 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 -14.9% for QAI 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
QAI charges 0.88% per year while QQQ charges 0.18%. On a $10,000 position that is $88 vs $18 annually, a gap of $70 per year that compounds over a long holding period. On income, QAI currently yields 1.40% against 0.44% for QQQ.
Holdings Overlap
QAI and QQQ share 0 holdings out of 135 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, QAI or QQQ?
QAI has an expense ratio of 0.88% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $70 per year of difference.
Which performed better, QAI or QQQ?
Over the past year QAI returned +13.40% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (17 years), QAI annualized +3.46% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, QAI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.2% for QAI. Worst drawdown: QAI -14.9% vs QQQ -83.0%.
Should I hold both QAI and QQQ?
QAI and QQQ have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QAI and QQQ?
QAI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 135 unique securities.
Which pays a higher dividend, QAI or QQQ?
QAI yields 1.40% while QQQ yields 0.44%, so QAI currently pays the higher dividend yield.
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