NCV vs QQQ
NCV vs QQQ
Virtus Convertible & Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. NCV delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | NCV | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.45% | 0.18% | |
| AUM | $418M | $455.8B | |
| Dividend Yield | 8.42% | 0.41% | |
| Holdings | 220 | 108 | |
| YTD Return | +18.35% | +16.83% | |
| 1Y Return | +31.59% | +26.58% | |
| 3Y Return (annualized) | +20.31% | +24.70% | |
| 5Y Return (annualized) | +4.30% | +14.88% | |
| Volatility (annualized) | 26.1% | 30.6% | |
| Max Drawdown | -84.8% | -83.0% | |
| Fund Family | Virtus Investment Partners | Invesco (US) | |
| Category | Convertible | Equity | |
| Inception | Mar 31, 2003 | Mar 10, 1999 |
NCV vs QQQ Performance
Virtus Convertible & Income Fund (NCV) is a ETF from Virtus Investment Partners and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NCV returned +31.59% while QQQ returned +26.58%. Year to date, NCV is up 18.35% versus a gain of 16.83% for QQQ.
Over three years, NCV compounded at +20.31% per year against +24.70% for QQQ; over five years the annualized figures are +4.30% and +14.88% respectively. Across the full 23-year window we track, QQQ has the edge at +13.06% annualized vs -2.67%. 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 26.1% for NCV. 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 -84.8% for NCV 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NCV charges 1.45% per year while QQQ charges 0.18%. On a $10,000 position that is $145 vs $18 annually, a gap of $127 per year that compounds over a long holding period. On income, NCV currently yields 8.42% against 0.41% for QQQ.
Holdings Overlap
NCV and QQQ share 8 holdings out of 192 unique holdings combined, representing a 3.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in NCV | Weight in QQQ | Difference |
|---|---|---|---|
| AMD | 0.40% | 3.85% | 3.45% |
| LITE | 3.80% | 0.26% | 3.54% |
| WDC | 2.64% | 0.85% | 1.79% |
| STX | Pro | Pro | Pro |
| DDOG | Pro | Pro | Pro |
| MSTR | Pro | Pro | Pro |
| MCHP | Pro | Pro | Pro |
| DASH | Pro | Pro | Pro |
See all 8 holdings NCV shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, NCV or QQQ?
NCV has an expense ratio of 1.45% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $127 per year of difference.
Which performed better, NCV or QQQ?
Over the past year NCV returned +31.59% vs +26.58% for QQQ, so NCV leads on 1-year performance. Over the longest common window we track (23 years), NCV annualized -2.67% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, NCV or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 26.1% for NCV. Worst drawdown: NCV -84.8% vs QQQ -83.0%.
Should I hold both NCV and QQQ?
NCV and QQQ have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NCV and QQQ?
NCV and QQQ share 8 common holdings with a 3.3% weight overlap. Combined, they hold 192 unique securities.
Which pays a higher dividend, NCV or QQQ?
NCV yields 8.42% while QQQ yields 0.41%, so NCV currently pays the higher dividend yield.
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