ICLO vs. QQQ

Last updated Jun 3, 2026

ICLO (Invesco Aaa CLO Floating Rate Note ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - ICLO is a CLO fund actively managed by Invesco, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. ICLO is actively managed, while QQQ is passively managed. Over the past 3 years, ICLO returned 6.73%/yr vs 28.78%/yr for QQQ. At a 0.13 correlation, their price movements are largely independent. ICLO charges 0.26%/yr vs 0.18%/yr for QQQ.

Performance

ICLO vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Aaa CLO Floating Rate Note ETF (ICLO) and Invesco QQQ ETF (QQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ICLO achieves a 2.07% return, which is significantly lower than QQQ's 21.30% return.

ICLO

• 1D: -0.02%
• 1M: 0.43%
• YTD: 2.07%
• 6M: 2.42%
• 1Y: 5.58%
• 3Y*: 6.73%
• 5Y*: —
• 10Y*: —

QQQ

• 1D: -0.26%
• 1M: 10.60%
• YTD: 21.30%
• 6M: 19.66%
• 1Y: 41.82%
• 3Y*: 28.78%
• 5Y*: 17.97%
• 10Y*: 21.94%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ICLO vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
ICLO Invesco Aaa CLO Floating Rate Note ETF	2.07%	5.27%	7.05%	8.90%	0.38%
QQQ Invesco QQQ ETF	21.30%	20.77%	25.58%	54.86%	-5.36%

Correlation

The correlation between ICLO and QQQ is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.24
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (All Time) Calculated using the full available price history since Dec 12, 2022	0.13

The correlation between ICLO and QQQ shifts across timeframes, from 0.13 (all time) to 0.24 (1 year), reflecting how their relationship changes across market environments.

ICLO vs. QQQ - Sectors Allocation Comparison

Sectors	ICLO	QQQ
Financial Services	6.6%	0.2%
Consumer Cyclical	3.3%	12.3%
Basic Materials	2.2%	1.1%
Communication Services	-	15.8%
Consumer Defensive	-	7.7%
Energy	-	0.6%
Healthcare	-	4.2%
Industrials	-	2.8%
Real Estate	-	0.1%
Technology	-	53.8%
Utilities	-	1.4%

Return for Risk

ICLO vs. QQQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ICLO

ICLO Risk / Return Rank: 97
ICLO Sharpe Ratio Rank: 96
ICLO Sortino Ratio Rank: 98
ICLO Omega Ratio Rank: 97
ICLO Calmar Ratio Rank: 98
ICLO Martin Ratio Rank: 98

QQQ

QQQ Risk / Return Rank: 73
QQQ Sharpe Ratio Rank: 79
QQQ Sortino Ratio Rank: 75
QQQ Omega Ratio Rank: 74
QQQ Calmar Ratio Rank: 69
QQQ Martin Ratio Rank: 71

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ICLO vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Aaa CLO Floating Rate Note ETF (ICLO) and Invesco QQQ ETF (QQQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ICLO	QQQ	Difference
Sharpe ratio Return per unit of total volatility	4.10	2.64	+1.46
Sortino ratio Return per unit of downside risk	6.95	3.45	+3.51
Omega ratio Gain probability vs. loss probability	1.98	1.45	+0.53
Calmar ratio Return relative to maximum drawdown	16.01	3.51	+12.49
Martin ratio Return relative to average drawdown	69.05	13.49	+55.55
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ICLO vs. QQQ - Sharpe Ratio Comparison

The current ICLO Sharpe Ratio is 4.10, which is higher than the QQQ Sharpe Ratio of 2.64. The chart below compares the historical Sharpe Ratios of ICLO and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ICLO	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.10	2.64	+1.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.81	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.99	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.83	0.41	+2.42

Drawdowns

ICLO vs. QQQ - Drawdown Comparison

The maximum ICLO drawdown since its inception was -3.47%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for ICLO and QQQ.

Drawdown Indicators

	ICLO	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-3.47%	-82.97%	+79.50%
Max Drawdown (1Y) Largest decline over 1 year	-0.35%	-11.96%	+11.61%
Max Drawdown (3Y) Largest decline over 3 years	-3.47%	-22.77%	+19.30%
Max Drawdown (5Y) Largest decline over 5 years	—	-35.12%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-35.12%	—
Current Drawdown Current decline from peak	-0.02%	-0.26%	+0.24%
Average Drawdown Average peak-to-trough decline	-0.06%	-32.79%	+32.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.08%	3.11%	-3.03%

Volatility

ICLO vs. QQQ - Volatility Comparison

The current volatility for Invesco Aaa CLO Floating Rate Note ETF (ICLO) is 0.32%, while Invesco QQQ ETF (QQQ) has a volatility of 4.49%. This indicates that ICLO experiences smaller price fluctuations and is considered to be less risky than QQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ICLO	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.32%	4.49%	-4.17%
Volatility (6M) Calculated over the trailing 6-month period	0.78%	12.10%	-11.32%
Volatility (1Y) Calculated over the trailing 1-year period	1.37%	15.94%	-14.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.43%	22.38%	-19.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.43%	22.29%	-19.86%

ICLO vs. QQQ - Expense Ratio Comparison

ICLO has a 0.26% expense ratio, which is higher than QQQ's 0.18% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ICLO vs. QQQ - Dividend Comparison

ICLO's dividend yield for the trailing twelve months is around 5.12%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ICLO Invesco Aaa CLO Floating Rate Note ETF	5.12%	5.49%	6.51%	7.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
QQQ Invesco QQQ ETF	0.38%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both ICLO and QQQ in my portfolio?

ICLO and QQQ have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ICLO or QQQ?

QQQ has higher volatility (4.49%) compared to ICLO (0.32%). In terms of maximum drawdown, ICLO dropped -3.47% vs QQQ's -82.97%.

Which ETF is better, ICLO or QQQ?

On 3-year performance, QQQ leads with 28.78% vs 6.73% for ICLO. On fees, QQQ is cheaper at 0.18% per year. On volatility, ICLO has been the lower-risk option at 0.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ICLO or QQQ?

Over the 3-year period, QQQ has performed better with a 28.78% return vs 6.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ICLO or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.26% for ICLO.

Which ETF pays a higher dividend yield, ICLO or QQQ?

ICLO has the higher dividend yield at 5.12%, compared with 0.38% for QQQ.

What is the main difference between ICLO and QQQ?

ICLO is categorized as CLO, while QQQ is Nasdaq-100. Their fees differ too: 0.26% for ICLO and 0.18% for QQQ.

Which has better risk-adjusted returns?

ICLO currently has the higher Sharpe Ratio (4.10 vs 2.64), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.