QQQ vs RFM
Invesco QQQ Trust, Series 1 vs RiverNorth Flexible Municipal Income Fund, Inc.
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | RFM | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 3.68% | |
| AUM | $496.3B | $97M | |
| Dividend Yield | 0.44% | 6.92% | |
| Holdings | 108 | 93 | |
| YTD Return | +16.64% | +8.09% | |
| 1Y Return | +27.27% | +13.72% | |
| 3Y Return (annualized) | +25.96% | +5.34% | |
| 5Y Return (annualized) | +14.54% | -1.32% | |
| Volatility (annualized) | 30.6% | 15.0% | |
| Max Drawdown | -83.0% | -33.8% | |
| Fund Family | Invesco (US) | RiverNorth | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Mar 26, 2020 |
QQQ vs RFM Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and RiverNorth Flexible Municipal Income Fund, Inc. (RFM) is a ETF from RiverNorth. Over the past year QQQ returned +27.27% while RFM returned +13.72%. Year to date, QQQ is up 16.64% versus a gain of 8.09% for RFM.
Over three years, QQQ compounded at +25.96% per year against +5.34% for RFM; over five years the annualized figures are +14.54% and -1.32% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs +2.32%. 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 15.0% for RFM. 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 -83.0% for QQQ and -33.8% for RFM. 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while RFM charges 3.68%. On a $10,000 position that is $18 vs $368 annually, a gap of $350 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 6.92% for RFM.
Holdings Overlap
QQQ and RFM share 0 holdings out of 149 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, QQQ or RFM?
QQQ has an expense ratio of 0.18% while RFM charges 3.68%. QQQ is the cheaper option. On a $10,000 investment, that is $350 per year of difference.
Which performed better, QQQ or RFM?
Over the past year QQQ returned +27.27% vs +13.72% for RFM, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), QQQ annualized +13.03% vs +2.32% for RFM. Past performance does not guarantee future results.
Which is riskier, QQQ or RFM?
QQQ has been the more volatile fund at 30.6% annualized versus 15.0% for RFM. Worst drawdown: QQQ -83.0% vs RFM -33.8%.
Should I hold both QQQ and RFM?
QQQ and RFM have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RFM?
QQQ and RFM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 149 unique securities.
Which pays a higher dividend, QQQ or RFM?
QQQ yields 0.44% while RFM yields 6.92%, so RFM currently pays the higher dividend yield.
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