QQQ vs RFMZ
Invesco QQQ Trust, Series 1 vs RiverNorth Flexible Municipal Income Fund II Inc
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. RFMZ offers more diversification with 126 holdings.
Side-by-Side Comparison
| Metric | QQQ | RFMZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 4.27% | |
| AUM | $496.3B | $351M | |
| Dividend Yield | 0.44% | 6.94% | |
| Holdings | 108 | 126 | |
| YTD Return | +16.64% | +8.36% | |
| 1Y Return | +27.27% | +13.76% | |
| 3Y Return (annualized) | +25.96% | +6.67% | |
| 5Y Return (annualized) | +14.54% | -2.16% | |
| Volatility (annualized) | 30.6% | 15.1% | |
| Max Drawdown | -83.0% | -39.5% | |
| Fund Family | Invesco (US) | RiverNorth | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 24, 2021 |
QQQ vs RFMZ Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and RiverNorth Flexible Municipal Income Fund II Inc (RFMZ) is a ETF from RiverNorth. Over the past year QQQ returned +27.27% while RFMZ returned +13.76%. Year to date, QQQ is up 16.64% versus a gain of 8.36% for RFMZ.
Over three years, QQQ compounded at +25.96% per year against +6.67% for RFMZ; over five years the annualized figures are +14.54% and -2.16% respectively. Across the full 6-year window we track, QQQ has the edge at +13.03% annualized vs -0.45%. 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 15.1% for RFMZ. 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 -39.5% for RFMZ. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while RFMZ charges 4.27%. On a $10,000 position that is $18 vs $427 annually, a gap of $409 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 6.94% for RFMZ.
Holdings Overlap
QQQ and RFMZ share 0 holdings out of 161 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 RFMZ?
QQQ has an expense ratio of 0.18% while RFMZ charges 4.27%. QQQ is the cheaper option. On a $10,000 investment, that is $409 per year of difference.
Which performed better, QQQ or RFMZ?
Over the past year QQQ returned +27.27% vs +13.76% for RFMZ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), QQQ annualized +13.03% vs -0.45% for RFMZ. Past performance does not guarantee future results.
Which is riskier, QQQ or RFMZ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.1% for RFMZ. Worst drawdown: QQQ -83.0% vs RFMZ -39.5%.
Should I hold both QQQ and RFMZ?
QQQ and RFMZ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and RFMZ?
QQQ and RFMZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 161 unique securities.
Which pays a higher dividend, QQQ or RFMZ?
QQQ yields 0.44% while RFMZ yields 6.94%, so RFMZ currently pays the higher dividend yield.
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