JAAA vs QQQ
JAAA vs QQQ
Janus Henderson AAA CLO 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 | JAAA | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.18% | |
| AUM | $27.2B | $455.8B | |
| Dividend Yield | 5.53% | 0.41% | |
| Holdings | 551 | 108 | |
| YTD Return | +2.56% | +14.45% | |
| 1Y Return | +4.83% | +24.70% | |
| 3Y Return (annualized) | +6.19% | +24.19% | |
| 5Y Return (annualized) | +4.89% | +14.49% | |
| Volatility (annualized) | 1.6% | 30.6% | |
| Max Drawdown | -2.6% | -83.0% | |
| Fund Family | Janus Henderson Investors | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 16, 2020 | Mar 10, 1999 |
JAAA vs QQQ Performance
Janus Henderson AAA CLO ETF (JAAA) is a ETF from Janus Henderson Investors and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year JAAA returned +4.83% while QQQ returned +24.70%. Year to date, JAAA is up 2.56% versus a gain of 14.45% for QQQ.
Over three years, JAAA compounded at +6.19% per year against +24.19% for QQQ; over five years the annualized figures are +4.89% and +14.49% respectively. Across the full 6-year window we track, QQQ has the edge at +12.98% annualized vs +4.49%. 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 1.6% for JAAA. 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 JAAA 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
JAAA charges 0.20% per year while QQQ charges 0.18%. On a $10,000 position that is $20 vs $18 annually, a gap of $2 per year that compounds over a long holding period. On income, JAAA currently yields 5.53% against 0.41% for QQQ.
Holdings Overlap
JAAA and QQQ share 0 holdings out of 141 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, JAAA or QQQ?
JAAA has an expense ratio of 0.20% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, JAAA or QQQ?
Over the past year JAAA returned +4.83% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), JAAA annualized +4.49% vs +12.98% for QQQ. Past performance does not guarantee future results.
Which is riskier, JAAA or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 1.6% for JAAA. Worst drawdown: JAAA -2.6% vs QQQ -83.0%.
Should I hold both JAAA and QQQ?
JAAA and QQQ have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between JAAA and QQQ?
JAAA and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 141 unique securities.
Which pays a higher dividend, JAAA or QQQ?
JAAA yields 5.53% while QQQ yields 0.41%, so JAAA currently pays the higher dividend yield.
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