LDP vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. LDP offers more diversification with 155 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: LDP

Side-by-Side Comparison

MetricLDPQQQWinner
Expense Ratio1.55%0.18%
AUM$2,693.25$455.8B
Dividend Yield7.03%0.41%
Holdings286108
YTD Return+1.00%+18.20%
1Y Return+3.63%+27.63%
3Y Return (annualized)+12.60%+25.54%
5Y Return (annualized)+2.52%+15.12%
Volatility (annualized)13.7%30.6%
Max Drawdown-50.2%-83.0%
Fund FamilyCohen & Steers FundsInvesco (US)
CategoryAllocation/BalancedEquity
InceptionJul 27, 2012Mar 10, 1999

LDP vs QQQ Performance

Cohen & Steers Limited Duration Preferred and Income Fund Inc. (LDP) is a ETF from Cohen & Steers Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LDP returned +3.63% while QQQ returned +27.63%. Year to date, LDP is up 1.00% versus a gain of 18.20% for QQQ.

Over three years, LDP compounded at +12.60% per year against +25.54% for QQQ; over five years the annualized figures are +2.52% and +15.12% respectively. Across the full 14-year window we track, QQQ has the edge at +13.11% annualized vs +1.72%. 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 13.7% for LDP. 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 -50.2% for LDP 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

LDP charges 1.55% per year while QQQ charges 0.18%. On a $10,000 position that is $155 vs $18 annually, a gap of $137 per year that compounds over a long holding period. On income, LDP currently yields 7.03% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

LDP and QQQ share 0 holdings out of 258 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, LDP or QQQ?

LDP has an expense ratio of 1.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $137 per year of difference.

Which performed better, LDP or QQQ?

Over the past year LDP returned +3.63% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), LDP annualized +1.72% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, LDP or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 13.7% for LDP. Worst drawdown: LDP -50.2% vs QQQ -83.0%.

Should I hold both LDP and QQQ?

LDP 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 LDP and QQQ?

LDP and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 258 unique securities.

Which pays a higher dividend, LDP or QQQ?

LDP yields 7.03% while QQQ yields 0.41%, so LDP currently pays the higher dividend yield.

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