FRA vs QQQ
FRA vs QQQ
Blackrock Floating Rate Income Strategies Fund Inc vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FRA offers more diversification with 221 holdings.
Side-by-Side Comparison
| Metric | FRA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 2.97% | 0.18% | |
| AUM | $402M | $455.8B | |
| Dividend Yield | 13.06% | 0.41% | |
| Holdings | 469 | 108 | |
| YTD Return | -0.68% | +12.48% | |
| 1Y Return | -7.11% | +22.35% | |
| 3Y Return (annualized) | +7.57% | +22.30% | |
| 5Y Return (annualized) | +6.35% | +14.24% | |
| Volatility (annualized) | 14.5% | 30.6% | |
| Max Drawdown | -51.4% | -83.0% | |
| Fund Family | BlackRock, Inc. (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 31, 2003 | Mar 10, 1999 |
FRA vs QQQ Performance
Blackrock Floating Rate Income Strategies Fund Inc (FRA) is a ETF from BlackRock, Inc. (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FRA returned -7.11% while QQQ returned +22.35%. Year to date, FRA is down 0.68% versus a gain of 12.48% for QQQ.
Over three years, FRA compounded at +7.57% per year against +22.30% for QQQ; over five years the annualized figures are +6.35% and +14.24% respectively. Across the full 23-year window we track, QQQ has the edge at +12.91% annualized vs +5.12%. 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 14.5% for FRA. 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 -51.4% for FRA 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FRA charges 2.97% per year while QQQ charges 0.18%. On a $10,000 position that is $297 vs $18 annually, a gap of $279 per year that compounds over a long holding period. On income, FRA currently yields 13.06% against 0.41% for QQQ.
Holdings Overlap
FRA and QQQ share 0 holdings out of 324 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, FRA or QQQ?
FRA has an expense ratio of 2.97% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $279 per year of difference.
Which performed better, FRA or QQQ?
Over the past year FRA returned -7.11% vs +22.35% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (23 years), FRA annualized +5.12% vs +12.91% for QQQ. Past performance does not guarantee future results.
Which is riskier, FRA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.5% for FRA. Worst drawdown: FRA -51.4% vs QQQ -83.0%.
Should I hold both FRA and QQQ?
FRA and QQQ have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FRA and QQQ?
FRA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 324 unique securities.
Which pays a higher dividend, FRA or QQQ?
FRA yields 13.06% while QQQ yields 0.41%, so FRA currently pays the higher dividend yield.
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