QQQ vs TFLO
Invesco QQQ Trust, Series 1 vs iShares Treasury Floating Rate Bond ETF
Quick Verdict
TFLO has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | QQQ | TFLO | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $496.3B | $6.7B | |
| Dividend Yield | 0.44% | 3.83% | |
| Holdings | 108 | 10 | |
| YTD Return | +19.52% | +2.34% | |
| 1Y Return | +26.68% | +3.94% | |
| 3Y Return (annualized) | +26.64% | +4.64% | |
| 5Y Return (annualized) | +15.36% | +3.80% | |
| Volatility (annualized) | 30.6% | 0.7% | |
| Max Drawdown | -83.0% | -5.0% | |
| Fund Family | Invesco (US) | iShares by BlackRock (US) | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 4, 2014 |
QQQ vs TFLO Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and iShares Treasury Floating Rate Bond ETF (TFLO) is a ETF from iShares by BlackRock (US). Over the past year QQQ returned +26.68% while TFLO returned +3.94%. Year to date, QQQ is up 19.52% versus a gain of 2.34% for TFLO.
Over three years, QQQ compounded at +26.64% per year against +4.64% for TFLO; over five years the annualized figures are +15.36% and +3.80% respectively. Across the full 13-year window we track, QQQ has the edge at +13.14% annualized vs +1.53%. 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 0.7% for TFLO. 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 -5.0% for TFLO. 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TFLO charges 0.15%. On a $10,000 position that is $18 vs $15 annually, a gap of $3 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 3.83% for TFLO.
Holdings Overlap
QQQ and TFLO share 0 holdings out of 107 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 TFLO?
QQQ has an expense ratio of 0.18% while TFLO charges 0.15%. TFLO is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or TFLO?
Over the past year QQQ returned +26.68% vs +3.94% for TFLO, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), QQQ annualized +13.14% vs +1.53% for TFLO. Past performance does not guarantee future results.
Which is riskier, QQQ or TFLO?
QQQ has been the more volatile fund at 30.6% annualized versus 0.7% for TFLO. Worst drawdown: QQQ -83.0% vs TFLO -5.0%.
Should I hold both QQQ and TFLO?
QQQ and TFLO have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TFLO?
QQQ and TFLO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 107 unique securities.
Which pays a higher dividend, QQQ or TFLO?
QQQ yields 0.44% while TFLO yields 3.83%, so TFLO currently pays the higher dividend yield.
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