AAA vs QQQ
AAA vs QQQ
Alternative Access First Priority CLO Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | AAA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.18% | |
| AUM | $45M | $455.8B | |
| Dividend Yield | 4.90% | 0.41% | |
| Holdings | 32 | 108 | |
| YTD Return | +2.91% | +17.27% | |
| 1Y Return | +4.94% | +28.64% | |
| 3Y Return (annualized) | +6.06% | +24.88% | |
| 5Y Return (annualized) | +4.76% | +14.86% | |
| Volatility (annualized) | 1.5% | 30.6% | |
| Max Drawdown | -2.6% | -83.0% | |
| Fund Family | Alternative Access Funds, LLC | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 9, 2020 | Mar 10, 1999 |
AAA vs QQQ Performance
Alternative Access First Priority CLO Bond ETF (AAA) is a ETF from Alternative Access Funds, LLC and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AAA returned +4.94% while QQQ returned +28.64%. Year to date, AAA is up 2.91% versus a gain of 17.27% for QQQ.
Over three years, AAA compounded at +6.06% per year against +24.88% for QQQ; over five years the annualized figures are +4.76% and +14.86% respectively. Across the full 6-year window we track, QQQ has the edge at +13.08% annualized vs +4.08%. 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 1.5% for AAA. 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 -2.6% for AAA and -83.0% for QQQ. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AAA charges 0.19% per year while QQQ charges 0.18%. On a $10,000 position that is $19 vs $18 annually, a gap of $1 per year that compounds over a long holding period. On income, AAA currently yields 4.90% against 0.41% for QQQ.
Holdings Overlap
AAA and QQQ share 0 holdings out of 105 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, AAA or QQQ?
AAA has an expense ratio of 0.19% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, AAA or QQQ?
Over the past year AAA returned +4.94% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), AAA annualized +4.08% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, AAA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 1.5% for AAA. Worst drawdown: AAA -2.6% vs QQQ -83.0%.
Should I hold both AAA and QQQ?
AAA and QQQ have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AAA and QQQ?
AAA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 105 unique securities.
Which pays a higher dividend, AAA or QQQ?
AAA yields 4.90% while QQQ yields 0.41%, so AAA currently pays the higher dividend yield.
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