QAI vs. QQQ

Last updated Jun 3, 2026

QAI (IQ Hedge Multi-Strategy Tracker ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - QAI is a Long-Short fund tracking the IQ Hedge Multi-Strategy Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, QAI returned 3.96%/yr vs 21.97%/yr for QQQ. A 0.68 correlation means they provide meaningful diversification when combined. QAI charges 0.79%/yr vs 0.18%/yr for QQQ.

Performance

QAI vs. QQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ Hedge Multi-Strategy Tracker ETF (QAI) 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, QAI achieves a 9.46% return, which is significantly lower than QQQ's 21.62% return. Over the past 10 years, QAI has underperformed QQQ with an annualized return of 3.96%, while QQQ has yielded a comparatively higher 21.97% annualized return.

QAI

• 1D: 0.30%
• 1M: 2.80%
• YTD: 9.46%
• 6M: 10.26%
• 1Y: 16.98%
• 3Y*: 10.41%
• 5Y*: 4.76%
• 10Y*: 3.96%

QQQ

• 1D: 0.46%
• 1M: 10.68%
• YTD: 21.62%
• 6M: 20.27%
• 1Y: 43.30%
• 3Y*: 28.89%
• 5Y*: 18.43%
• 10Y*: 21.97%

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

QAI vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QAI IQ Hedge Multi-Strategy Tracker ETF	9.46%	8.29%	6.67%	10.07%	-8.68%	-0.16%	5.73%	8.68%	-3.32%	6.17%
QQQ Invesco QQQ ETF	21.62%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between QAI and QQQ is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.73
Correlation (All Time) Calculated using the full available price history since Mar 26, 2009	0.68

The correlation between QAI and QQQ shifts across timeframes, from 0.68 (all time) to 0.82 (1 year), reflecting how their relationship changes across market environments.

QAI vs. QQQ - Sectors Allocation Comparison

Sectors	QAI	QQQ
Technology	21.9%	53.8%
Financial Services	19.5%	0.2%
Industrials	13.6%	2.8%
Communication Services	11.2%	15.8%
Consumer Cyclical	7.3%	12.3%
Healthcare	7.1%	4.2%
Basic Materials	5.3%	1.1%
Utilities	3.8%	1.4%
Energy	3.7%	0.6%
Consumer Defensive	3.7%	7.7%
Real Estate	2.9%	0.1%

Return for Risk

QAI vs. QQQ — Risk / Return Rank

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

QAI

QAI Risk / Return Rank: 87
QAI Sharpe Ratio Rank: 86
QAI Sortino Ratio Rank: 88
QAI Omega Ratio Rank: 89
QAI Calmar Ratio Rank: 84
QAI Martin Ratio Rank: 87

QQQ

QQQ Risk / Return Rank: 77
QQQ Sharpe Ratio Rank: 83
QQQ Sortino Ratio Rank: 78
QQQ Omega Ratio Rank: 77
QQQ Calmar Ratio Rank: 73
QQQ Martin Ratio Rank: 74

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.

QAI vs. QQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ Hedge Multi-Strategy Tracker ETF (QAI) 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.

	QAI	QQQ	Difference
Sharpe ratio Return per unit of total volatility	2.86	2.73	+0.13
Sortino ratio Return per unit of downside risk	4.06	3.55	+0.52
Omega ratio Gain probability vs. loss probability	1.57	1.47	+0.11
Calmar ratio Return relative to maximum drawdown	4.57	3.71	+0.85
Martin ratio Return relative to average drawdown	18.90	14.30	+4.60
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QAI vs. QQQ - Sharpe Ratio Comparison

The current QAI Sharpe Ratio is 2.86, which is comparable to the QQQ Sharpe Ratio of 2.73. The chart below compares the historical Sharpe Ratios of QAI 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

	QAI	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.86	2.73	+0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.83	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	0.99	-0.34
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.41	+0.17

Drawdowns

QAI vs. QQQ - Drawdown Comparison

The maximum QAI drawdown since its inception was -14.95%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for QAI and QQQ.

Drawdown Indicators

	QAI	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-14.95%	-82.97%	+68.02%
Max Drawdown (1Y) Largest decline over 1 year	-3.71%	-11.96%	+8.25%
Max Drawdown (3Y) Largest decline over 3 years	-7.78%	-22.77%	+14.99%
Max Drawdown (5Y) Largest decline over 5 years	-14.32%	-35.12%	+20.80%
Max Drawdown (10Y) Largest decline over 10 years	-14.95%	-35.12%	+20.17%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-2.57%	-32.79%	+30.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	3.11%	-2.21%

Volatility

QAI vs. QQQ - Volatility Comparison

The current volatility for IQ Hedge Multi-Strategy Tracker ETF (QAI) is 2.01%, while Invesco QQQ ETF (QQQ) has a volatility of 4.48%. This indicates that QAI 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

	QAI	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.01%	4.48%	-2.47%
Volatility (6M) Calculated over the trailing 6-month period	4.91%	12.11%	-7.20%
Volatility (1Y) Calculated over the trailing 1-year period	5.97%	15.95%	-9.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.56%	22.39%	-15.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.17%	22.30%	-16.13%

QAI vs. QQQ - Expense Ratio Comparison

QAI has a 0.79% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

QAI vs. QQQ - Dividend Comparison

QAI's dividend yield for the trailing twelve months is around 1.37%, more than QQQ's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QAI IQ Hedge Multi-Strategy Tracker ETF	1.37%	1.50%	2.22%	4.08%	2.00%	0.28%	1.98%	1.91%	1.90%	0.00%	0.00%	0.48%
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 QAI and QQQ in my portfolio?

QAI and QQQ have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QAI or QQQ?

QQQ has higher volatility (4.48%) compared to QAI (2.01%). In terms of maximum drawdown, QAI dropped -14.95% vs QQQ's -82.97%.

Which ETF is better, QAI or QQQ?

On 10-year performance, QQQ leads with 21.97% vs 3.96% for QAI. On fees, QQQ is cheaper at 0.18% per year. On volatility, QAI has been the lower-risk option at 2.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QAI or QQQ?

Over the 10-year period, QQQ has performed better with a 21.97% return vs 3.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QAI or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.79% for QAI.

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

QAI has the higher dividend yield at 1.37%, compared with 0.38% for QQQ.

What is the main difference between QAI and QQQ?

QAI is categorized as Long-Short, while QQQ is Nasdaq-100. QAI tracks IQ Hedge Multi-Strategy Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: New York Life and Invesco. Their fees differ too: 0.79% for QAI and 0.18% for QQQ.

Which has better risk-adjusted returns?

QAI currently has the higher Sharpe Ratio (2.86 vs 2.73), 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.