NIE vs QQQ
NIE vs QQQ
Virtus Equity & Convertible Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. NIE offers more diversification with 161 holdings.
Side-by-Side Comparison
| Metric | NIE | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.07% | 0.18% | |
| AUM | $797M | $455.8B | |
| Dividend Yield | 8.66% | 0.41% | |
| Holdings | 196 | 108 | |
| YTD Return | +10.35% | +18.20% | |
| 1Y Return | +20.59% | +27.63% | |
| 3Y Return (annualized) | +17.95% | +25.54% | |
| 5Y Return (annualized) | +9.75% | +15.12% | |
| Volatility (annualized) | 17.6% | 30.6% | |
| Max Drawdown | -63.8% | -83.0% | |
| Fund Family | Virtus Investment Partners | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Feb 27, 2007 | Mar 10, 1999 |
NIE vs QQQ Performance
Virtus Equity & Convertible Income Fund (NIE) is a ETF from Virtus Investment Partners and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year NIE returned +20.59% while QQQ returned +27.63%. Year to date, NIE is up 10.35% versus a gain of 18.20% for QQQ.
Over three years, NIE compounded at +17.95% per year against +25.54% for QQQ; over five years the annualized figures are +9.75% and +15.12% respectively. Across the full 20-year window we track, QQQ has the edge at +13.11% annualized vs +3.61%. 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 17.6% for NIE. 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 -63.8% for NIE 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
NIE charges 1.07% per year while QQQ charges 0.18%. On a $10,000 position that is $107 vs $18 annually, a gap of $89 per year that compounds over a long holding period. On income, NIE currently yields 8.66% against 0.41% for QQQ.
Holdings Overlap
NIE and QQQ share 31 holdings out of 233 unique holdings combined, representing a 34.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in NIE | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 5.65% | 7.88% | 2.23% |
| AAPL | 4.55% | 7.46% | 2.91% |
| MSFT | 3.16% | 4.65% | 1.49% |
| GOOGL | Pro | Pro | Pro |
| AMZN | Pro | Pro | Pro |
| MU | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| TSLA | Pro | Pro | Pro |
See all 10 holdings NIE 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, NIE or QQQ?
NIE has an expense ratio of 1.07% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $89 per year of difference.
Which performed better, NIE or QQQ?
Over the past year NIE returned +20.59% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (20 years), NIE annualized +3.61% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, NIE or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.6% for NIE. Worst drawdown: NIE -63.8% vs QQQ -83.0%.
Should I hold both NIE and QQQ?
NIE and QQQ have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between NIE and QQQ?
NIE and QQQ share 31 common holdings with a 34.2% weight overlap. Combined, they hold 233 unique securities.
Which pays a higher dividend, NIE or QQQ?
NIE yields 8.66% while QQQ yields 0.41%, so NIE currently pays the higher dividend yield.
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