QQQ vs TFLR
Invesco QQQ Trust, Series 1 vs T. Rowe Price Floating Rate ETF
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. TFLR offers more diversification with 347 holdings.
Side-by-Side Comparison
| Metric | QQQ | TFLR | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.61% | |
| AUM | $496.3B | $689M | |
| Dividend Yield | 0.44% | 6.70% | |
| Holdings | 108 | 347 | |
| YTD Return | +16.64% | +2.46% | |
| 1Y Return | +27.27% | +4.96% | |
| 3Y Return (annualized) | +25.96% | +7.16% | |
| 5Y Return (annualized) | +14.54% | - | |
| Volatility (annualized) | 30.6% | 2.5% | |
| Max Drawdown | -83.0% | -4.0% | |
| Fund Family | Invesco (US) | T.Rowe Price | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Nov 16, 2022 |
QQQ vs TFLR Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and T. Rowe Price Floating Rate ETF (TFLR) is a ETF from T.Rowe Price. Over the past year QQQ returned +27.27% while TFLR returned +4.96%. Year to date, QQQ is up 16.64% versus a gain of 2.46% for TFLR.
Over three years, QQQ compounded at +25.96% per year against +7.16% for TFLR. Across the full 4-year window we track, QQQ has the edge at +13.03% annualized vs +7.57%. 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 2.5% for TFLR. 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 -4.0% for TFLR. 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while TFLR charges 0.61%. On a $10,000 position that is $18 vs $61 annually, a gap of $43 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 6.70% for TFLR.
Holdings Overlap
QQQ and TFLR share 0 holdings out of 273 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 TFLR?
QQQ has an expense ratio of 0.18% while TFLR charges 0.61%. QQQ is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, QQQ or TFLR?
Over the past year QQQ returned +27.27% vs +4.96% for TFLR, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), QQQ annualized +13.03% vs +7.57% for TFLR. Past performance does not guarantee future results.
Which is riskier, QQQ or TFLR?
QQQ has been the more volatile fund at 30.6% annualized versus 2.5% for TFLR. Worst drawdown: QQQ -83.0% vs TFLR -4.0%.
Should I hold both QQQ and TFLR?
QQQ and TFLR have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and TFLR?
QQQ and TFLR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 273 unique securities.
Which pays a higher dividend, QQQ or TFLR?
QQQ yields 0.44% while TFLR yields 6.70%, so TFLR currently pays the higher dividend yield.
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