What are IQQQ and QQQI?

IQQuq and QQQI are exchange-traded funds from ProShares and Neos respectively. They focus on generating high income, primarily through derivatives strategies like options. Both are categorized under derivative income and aim to provide investors with a yield-enhanced exposure to the Nasdaq-100 index constituents. The funds' structures include holding stocks with additional option strategies, thus offering a hybrid approach between traditional equity investing and income generation.

How do ETF distributions work?

ETFs like IQQ and QQQI may distribute dividends to their investors based on the income generated by the underlying stocks and derivative strategies. For QQQI, the higher yield of 13.72% versus IQQ's 5.77% implies a more aggressive distribution policy, likely due to options premium income. ETFs are not obligated to distribute all earnings and can retain some capital for reinvestment or operational expenses.

What does an expense ratio mean for investors?

The expense ratio, like IQQ's 0.55% and QQQI's 0.68%, represents the annual fee charged by the ETF to manage its assets. Over time, a higher expense ratio can erode net returns, making it crucial for investors to consider costs when comparing similar funds. These ratios include the fees for management, administrative tasks, and operational costs. A lower expense ratio means the fund is cheaper to hold.

Which fund has a lower expense ratio?

IQQ has a lower expense ratio at 0.55% compared to QQQI's 0.68%. This difference of 0.13 percentage points means that for every $10,000 invested, IQQ's annual cost is approximately $13 less than QQQI. While this may seem small, these fees can compound over time, potentially impacting long-term returns. It's an important consideration for cost-conscious investors evaluating these high-income ETFs.

Do these ETFs track the Nasdaq-100?

Neither IQQ nor QQQI explicitly tracks the Nasdaq-100, but they invest in its top constituents like Apple, Microsoft, and Nvidia. Both funds apply derivative strategies alongside stock holdings, aiming to generate extra income while maintaining exposure to the technology sector. However, the exact index tracking methodology is not available for either ETF, limiting transparency on how closely these funds follow any benchmark index.

How similar are the top holdings?

Both IQQ and QQQI hold a significant overlap in their top 10 holdings, including NVDA, AAPL, MSFT, MU, AMZN, AMD, GOOGL, META, TSLA, and GOOG. These positions form a substantial part of each portfolio, indicating their focus on large-cap tech stocks. Despite the similar composition, the weightings differ slightly, which might reflect each fund's strategy in balancing stock holdings with derivative income.

Which fund offers a higher dividend yield?

QQQI offers a substantially higher dividend yield of 13.72% compared to IQQ's 5.77%. This difference reflects QQQI's more aggressive approach to income generation through derivative strategies, which potentially involves significant reliance on option premiums. Higher yields can be attractive for income-focused investors but may come with increased risk and potential sacrifice of capital appreciation.

How does fund size impact liquidity?

QQQI, with $14.8 billion in net assets, boasts much larger liquidity and trading depth compared to IQQ's $405 million. A larger fund size typically means narrower bid-ask spreads and easier entry and exit. Investors might find it advantageous to trade in a fund with substantial assets like QQQI, though this also indicates a more established investor base and market presence.

What are the risks associated with high yields?

A yield like QQQI's 13.72% might indicate significant reliance on option premium income. This strategy can involve upside sacrifice if market conditions are favourable for appreciation, leading to a potential trade-off where higher current income comes at the cost of capital growth. IQQ's moderate 5.77% yield suggests a more balanced approach but still involves derivative usage.

What factors should investors consider when choosing between these funds?

Investors comparing IQQ and QQQI should consider several factors including expense ratios, dividend yields, and fund liquidity. IQQ's lower expense ratio at 0.55% and moderate yield of 5.77% might appeal to cost-conscious investors, whereas QQQI's higher yield of 13.72% and larger net assets of $14.8 billion could attract those seeking aggressive income. Assessing risk tolerance and income needs is crucial.

What does an educational disclaimer mean?

The comparison of IQQ and QQQI is for educational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a financial advisor before making investment decisions. This disclaimer emphasises that the information provided is intended to help investors understand the mechanics of ETFs and how to interpret fund data responsibly.

IQQQ vs QQQI

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare ProShares Nasdaq-100 High Income ETF (IQQQ) and NEOS NASDAQ 100 High Income ETF (QQQI). Explore fees, holdings, dividends and how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

IQQQ

Metric

QQQI

0.55%

Expense Ratio

0.68%

5.77%

Dividend Yield

13.72%

$405.34M

Net Assets

$14.80B

106

Holdings

107

Mar 18, 2024

Inception Date

Jan 30, 2024

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Index Tracked

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Derivative Income

Fund Category

Derivative Income

IQQQ costs about $13.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	IQQQ	QQQI
NVDANVIDIA Corporation	7.09%	8.43%
AAPLApple Inc.	6.49%	7.77%
MSFTMicrosoft Corporation	4.85%	5.86%
MUMicron Technology, Inc.	4.19%	4.82%
AMZNAmazon.com, Inc.	3.62%	4.29%
AMDAdvanced Micro Devices, Inc.	3.34%	3.90%
GOOGLAlphabet Inc.	2.71%	3.21%
METAMeta Platforms, Inc.	2.62%	3.21%
TSLATesla, Inc.	2.53%	2.91%
GOOGAlphabet Inc.	2.52%	2.97%

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Investment Analysis

IQQQ

Pros

Lower expense ratio of 0.55% compared to the peer fund's 0.68%.
],
Moderate dividend yield of 5.77% may suggest more conservative derivative usage.

Considerations

Smaller net assets of $405 million could result in wider bid-ask spreads and reduced liquidity.
Recent inception date of March 2024 limits historical tracking performance visibility.
Index tracking methodology is not available, increasing uncertainty around portfolio construction.

QQQI

Pros

Substantial net assets of $14.8 billion indicate strong liquidity and trading depth.
High dividend yield of 13.72% caters to investors seeking aggressive current income.
Established presence in the derivative income category with a large investor base.

Considerations

Higher expense ratio of 0.68% creates a greater ongoing drag on net returns.
Very high yield of 13.72% may indicate significant reliance on option premiums with upside sacrifice.
Index tracking methodology is not available, limiting transparency on underlying replication.

About IQQQ and QQQI

IQQQ (IQQQ)

The ProShares Nasdaq-100 High Income ETF (IQQQ) is designed to provide investors with high potential income through options strategies, while maintaining exposure to the performance of the Nasdaq-100 index. As a derivative income fund, it aims to generate additional yield by writing call options on the index, which can help boost distributions. With an expense ratio of 0.55% and net assets of approximately USD 405 million, it offers a structured approach to income generation in the technology-heavy sector. Since its inception in March 2024, the fund has held 106 positions. It is important to note that option strategies may limit capital appreciation during strong market rallies, as gains from the underlying index might be used to fund the distributions. Investors should consider their income needs and risk tolerance, bearing in mind that while the current yield is attractive, values can fluctuate, and returns are not guaranteed.

QQQI (QQQI)

The NEOS NASDAQ 100 High Income ETF (QQQI) is a derivative income fund designed to offer investors exposure to the technology-heavy NASDAQ 100 index while generating substantial current income. Launched in January 2024, this ETF holds a diversified portfolio of 107 assets, primarily focusing on large-cap technology and growth companies. Its distinguishing feature is the systematic writing of covered call options on the underlying index, a strategy intended to harvest premium income that is distributed to shareholders. With a reported dividend yield of approximately 13.72%, it appeals to those seeking regular cash flow alongside potential capital appreciation. However, investors should note that the covered call strategy may limit upside potential during strong market rallies. The fund has an expense ratio of 0.68%, which is moderate for a derivative-based product. As with all investments, capital is at risk, and values can fluctuate due to market conditions.

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IQQQ vs QQQI

Fund Snapshot