QQQ vs SABA
Invesco QQQ Trust, Series 1 vs Saba Capital Income & Opportunities Fund II
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. SABA offers more diversification with 379 holdings.
Side-by-Side Comparison
| Metric | QQQ | SABA | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.71% | |
| AUM | $455.8B | $255M | |
| Dividend Yield | 0.41% | 8.41% | |
| Holdings | 108 | 740 | |
| YTD Return | +18.31% | +4.89% | |
| 1Y Return | +25.37% | -2.76% | |
| 3Y Return (annualized) | +25.79% | +9.60% | |
| 5Y Return (annualized) | +15.20% | +3.42% | |
| Volatility (annualized) | 30.6% | 13.2% | |
| Max Drawdown | -83.0% | -62.0% | |
| Fund Family | Invesco (US) | Saba Capital | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Mar 17, 1988 |
QQQ vs SABA Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and Saba Capital Income & Opportunities Fund II (SABA) is a ETF from Saba Capital. Over the past year QQQ returned +25.37% while SABA returned -2.76%. Year to date, QQQ is up 18.31% versus a gain of 4.89% for SABA.
Over three years, QQQ compounded at +25.79% per year against +9.60% for SABA; over five years the annualized figures are +15.20% and +3.42% respectively. Across the full 27-year window we track, QQQ has the edge at +13.10% annualized vs -0.19%. 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 13.2% for SABA. 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 -62.0% for SABA. 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 0.19. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while SABA charges 0.71%. On a $10,000 position that is $18 vs $71 annually, a gap of $53 per year that compounds over a long holding period. On income, QQQ currently yields 0.41% against 8.41% for SABA.
Holdings Overlap
QQQ and SABA share 17 holdings out of 465 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 SABA?
QQQ has an expense ratio of 0.18% while SABA charges 0.71%. QQQ is the cheaper option. On a $10,000 investment, that is $53 per year of difference.
Which performed better, QQQ or SABA?
Over the past year QQQ returned +25.37% vs -2.76% for SABA, so QQQ leads on 1-year performance. Over the longest common window we track (27 years), QQQ annualized +13.10% vs -0.19% for SABA. Past performance does not guarantee future results.
Which is riskier, QQQ or SABA?
QQQ has been the more volatile fund at 30.6% annualized versus 13.2% for SABA. Worst drawdown: QQQ -83.0% vs SABA -62.0%.
Should I hold both QQQ and SABA?
QQQ and SABA have a monthly-return correlation of 0.19, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and SABA?
QQQ and SABA share 17 common holdings with a 0.0% weight overlap. Combined, they hold 465 unique securities.
Which pays a higher dividend, QQQ or SABA?
QQQ yields 0.41% while SABA yields 8.41%, so SABA currently pays the higher dividend yield.
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