NCZ vs QQQ

Quick Verdict

QQQ has a lower expense ratio. NCZ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: NCZMore Diversified: QQQ

Side-by-Side Comparison

MetricNCZQQQWinner
Expense Ratio1.44%0.18%
AUM$321M$455.8B
Dividend Yield8.16%0.41%
Holdings220108
YTD Return+20.22%+18.20%
1Y Return+32.27%+27.63%
3Y Return (annualized)+22.27%+25.54%
5Y Return (annualized)+5.41%+15.12%
Volatility (annualized)25.6%30.6%
Max Drawdown-85.6%-83.0%
Fund FamilyVirtus Investment PartnersInvesco (US)
CategoryConvertibleEquity
InceptionJul 31, 2003Mar 10, 1999

NCZ vs QQQ Performance

Virtus Convertible & Income Fund II (NCZ) is a ETF from Virtus Investment Partners and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NCZ returned +32.27% while QQQ returned +27.63%. Year to date, NCZ is up 20.22% versus a gain of 18.20% for QQQ.

Over three years, NCZ compounded at +22.27% per year against +25.54% for QQQ; over five years the annualized figures are +5.41% and +15.12% respectively. Across the full 23-year window we track, QQQ has the edge at +13.11% annualized vs -3.03%. 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 25.6% for NCZ. 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 -85.6% for NCZ 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

NCZ charges 1.44% per year while QQQ charges 0.18%. On a $10,000 position that is $144 vs $18 annually, a gap of $126 per year that compounds over a long holding period. On income, NCZ currently yields 8.16% against 0.41% for QQQ.

Holdings Overlap

3.3%overlap

NCZ 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

StockWeight in NCZWeight in QQQDifference
AMD0.41%3.85%3.44%
LITE3.94%0.26%3.68%
WDC2.73%0.85%1.88%
STXProProPro
DDOGProProPro
MSTRProProPro
MCHPProProPro
DASHProProPro
See all 8 holdings NCZ shares with QQQ
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Frequently Asked Questions

Which is cheaper, NCZ or QQQ?

NCZ has an expense ratio of 1.44% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $126 per year of difference.

Which performed better, NCZ or QQQ?

Over the past year NCZ returned +32.27% vs +27.63% for QQQ, so NCZ leads on 1-year performance. Over the longest common window we track (23 years), NCZ annualized -3.03% vs +13.11% for QQQ. Past performance does not guarantee future results.

Which is riskier, NCZ or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 25.6% for NCZ. Worst drawdown: NCZ -85.6% vs QQQ -83.0%.

Should I hold both NCZ and QQQ?

NCZ and QQQ have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between NCZ and QQQ?

NCZ and QQQ share 8 common holdings with a 3.3% weight overlap. Combined, they hold 192 unique securities.

Which pays a higher dividend, NCZ or QQQ?

NCZ yields 8.16% while QQQ yields 0.41%, so NCZ currently pays the higher dividend yield.

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