NFLT vs QQQ
NFLT vs QQQ
Virtus Newfleet Multi-Sector Bond 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 | NFLT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $447M | $455.8B | |
| Dividend Yield | 5.49% | 0.41% | |
| Holdings | 895 | 108 | |
| YTD Return | +1.88% | +16.83% | |
| 1Y Return | +5.38% | +26.58% | |
| 3Y Return (annualized) | +7.27% | +24.70% | |
| 5Y Return (annualized) | +3.07% | +14.88% | |
| Volatility (annualized) | 5.3% | 30.6% | |
| Max Drawdown | -18.9% | -83.0% | |
| Fund Family | Virtus Investment Partners | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 10, 2015 | Mar 10, 1999 |
NFLT vs QQQ Performance
Virtus Newfleet Multi-Sector Bond ETF (NFLT) is a ETF from Virtus Investment Partners and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NFLT returned +5.38% while QQQ returned +26.58%. Year to date, NFLT is up 1.88% versus a gain of 16.83% for QQQ.
Over three years, NFLT compounded at +7.27% per year against +24.70% for QQQ; over five years the annualized figures are +3.07% and +14.88% respectively. Across the full 11-year window we track, QQQ has the edge at +13.06% annualized vs +1.75%. 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 5.3% for NFLT. 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 -18.9% for NFLT 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
NFLT charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, NFLT currently yields 5.49% against 0.41% for QQQ.
Holdings Overlap
NFLT and QQQ share 0 holdings out of 115 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, NFLT or QQQ?
NFLT has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, NFLT or QQQ?
Over the past year NFLT returned +5.38% vs +26.58% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (11 years), NFLT annualized +1.75% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, NFLT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.3% for NFLT. Worst drawdown: NFLT -18.9% vs QQQ -83.0%.
Should I hold both NFLT and QQQ?
NFLT and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NFLT and QQQ?
NFLT and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 115 unique securities.
Which pays a higher dividend, NFLT or QQQ?
NFLT yields 5.49% while QQQ yields 0.41%, so NFLT currently pays the higher dividend yield.
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