ARDC vs QQQ
ARDC vs QQQ
Ares Dynamic Credit Allocation Fund Inc. 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 | ARDC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 3.69% | 0.18% | |
| AUM | $320M | $455.8B | |
| Dividend Yield | 10.05% | 0.41% | |
| Holdings | 316 | 108 | |
| YTD Return | -0.57% | +17.27% | |
| 1Y Return | -3.80% | +28.64% | |
| 3Y Return (annualized) | +9.10% | +24.88% | |
| 5Y Return (annualized) | +4.61% | +14.86% | |
| Volatility (annualized) | 13.5% | 30.6% | |
| Max Drawdown | -57.1% | -83.0% | |
| Fund Family | Ares Public Funds | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 27, 2012 | Mar 10, 1999 |
ARDC vs QQQ Performance
Ares Dynamic Credit Allocation Fund Inc. (ARDC) is a ETF from Ares Public Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year ARDC returned -3.80% while QQQ returned +28.64%. Year to date, ARDC is down 0.57% versus a gain of 17.27% for QQQ.
Over three years, ARDC compounded at +9.10% per year against +24.88% for QQQ; over five years the annualized figures are +4.61% and +14.86% respectively. Across the full 14-year window we track, QQQ has the edge at +13.08% annualized vs +0.35%. 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 13.5% for ARDC. 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 -57.1% for ARDC 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ARDC charges 3.69% per year while QQQ charges 0.18%. On a $10,000 position that is $369 vs $18 annually, a gap of $351 per year that compounds over a long holding period. On income, ARDC currently yields 10.05% against 0.41% for QQQ.
Holdings Overlap
ARDC and QQQ share 0 holdings out of 203 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, ARDC or QQQ?
ARDC has an expense ratio of 3.69% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $351 per year of difference.
Which performed better, ARDC or QQQ?
Over the past year ARDC returned -3.80% vs +28.64% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), ARDC annualized +0.35% vs +13.08% for QQQ. Past performance does not guarantee future results.
Which is riskier, ARDC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.5% for ARDC. Worst drawdown: ARDC -57.1% vs QQQ -83.0%.
Should I hold both ARDC and QQQ?
ARDC and QQQ have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ARDC and QQQ?
ARDC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 203 unique securities.
Which pays a higher dividend, ARDC or QQQ?
ARDC yields 10.05% while QQQ yields 0.41%, so ARDC currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.