QQQ vs XFLT
Invesco QQQ Trust, Series 1 vs XAI Octagon Floating Rate & Alternative Income Trust
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. XFLT offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | QQQ | XFLT | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 6.29% | |
| AUM | $496.3B | $350M | |
| Dividend Yield | 0.44% | 15.69% | |
| Holdings | 108 | 509 | |
| YTD Return | +16.64% | -2.24% | |
| 1Y Return | +27.27% | -10.69% | |
| 3Y Return (annualized) | +25.96% | -1.08% | |
| 5Y Return (annualized) | +14.54% | -0.96% | |
| Volatility (annualized) | 30.6% | 25.7% | |
| Max Drawdown | -83.0% | -64.6% | |
| Fund Family | Invesco (US) | XA Investments LLC | |
| Category | Equity | Fixed Income | |
| Inception | Mar 10, 1999 | Sep 27, 2017 |
QQQ vs XFLT Performance
Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US) and XAI Octagon Floating Rate & Alternative Income Trust (XFLT) is a ETF from XA Investments LLC. Over the past year QQQ returned +27.27% while XFLT returned -10.69%. Year to date, QQQ is up 16.64% versus a loss of 2.24% for XFLT.
Over three years, QQQ compounded at +25.96% per year against -1.08% for XFLT; over five years the annualized figures are +14.54% and -0.96% respectively. Across the full 9-year window we track, QQQ has the edge at +13.03% annualized vs -1.38%. 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 25.7% for XFLT. 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 -64.6% for XFLT. 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
QQQ charges 0.18% per year while XFLT charges 6.29%. On a $10,000 position that is $18 vs $629 annually, a gap of $611 per year that compounds over a long holding period. On income, QQQ currently yields 0.44% against 15.69% for XFLT.
Holdings Overlap
QQQ and XFLT share 0 holdings out of 252 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 XFLT?
QQQ has an expense ratio of 0.18% while XFLT charges 6.29%. QQQ is the cheaper option. On a $10,000 investment, that is $611 per year of difference.
Which performed better, QQQ or XFLT?
Over the past year QQQ returned +27.27% vs -10.69% for XFLT, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), QQQ annualized +13.03% vs -1.38% for XFLT. Past performance does not guarantee future results.
Which is riskier, QQQ or XFLT?
QQQ has been the more volatile fund at 30.6% annualized versus 25.7% for XFLT. Worst drawdown: QQQ -83.0% vs XFLT -64.6%.
Should I hold both QQQ and XFLT?
QQQ and XFLT have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between QQQ and XFLT?
QQQ and XFLT share 0 common holdings with a 0.0% weight overlap. Combined, they hold 252 unique securities.
Which pays a higher dividend, QQQ or XFLT?
QQQ yields 0.44% while XFLT yields 15.69%, so XFLT currently pays the higher dividend yield.
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