QQQ vs USFR
Invesco QQQ Trust, Series 1 vs WisdomTree Floating Rate Treasury Fund
Quick Verdict
USFR has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | QQQ | USFR | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.15% | |
| AUM | $455.8B | $18.3B | |
| Dividend Yield | 0.41% | 3.84% | |
| Holdings | 108 | 6 | |
| YTD Return | +19.68% | +2.37% | |
| 1Y Return | +26.75% | +3.97% | |
| 3Y Return (annualized) | +26.25% | +4.52% | |
| 5Y Return (annualized) | +15.39% | +3.73% | |
| Volatility (annualized) | 30.6% | 0.9% | |
| Max Drawdown | -83.0% | -1.4% | |
| Fund Family | Invesco (US) | WisdomTree Investments | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Feb 4, 2014 |
QQQ vs USFR Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and WisdomTree Floating Rate Treasury Fund (USFR) is a ETF from WisdomTree Investments. Over the past year QQQ returned +26.75% while USFR returned +3.97%. Year to date, QQQ is up 19.68% versus a gain of 2.37% for USFR.
Over three years, QQQ compounded at +26.25% per year against +4.52% for USFR; over five years the annualized figures are +15.39% and +3.73% respectively. Across the full 13-year window we track, QQQ has the edge at +13.15% annualized vs +1.50%. 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 0.9% for USFR. 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 -1.4% for USFR. 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while USFR 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 0.41% against 3.84% for USFR.
Holdings Overlap
QQQ and USFR share 0 holdings out of 104 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 USFR?
QQQ has an expense ratio of 0.18% while USFR charges 0.15%. USFR is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, QQQ or USFR?
Over the past year QQQ returned +26.75% vs +3.97% for USFR, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), QQQ annualized +13.15% vs +1.50% for USFR. Past performance does not guarantee future results.
Which is riskier, QQQ or USFR?
QQQ has been the more volatile fund at 30.6% annualized versus 0.9% for USFR. Worst drawdown: QQQ -83.0% vs USFR -1.4%.
Should I hold both QQQ and USFR?
QQQ and USFR have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and USFR?
QQQ and USFR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, QQQ or USFR?
QQQ yields 0.41% while USFR yields 3.84%, so USFR currently pays the higher dividend yield.
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