AFGR vs QQQ
First Trust Active Factor Large Cap Growth 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 | AFGR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.18% | |
| AUM | $91M | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 76 | 108 | |
| YTD Return | +7.80% | +19.68% | |
| 1Y Return | +9.15% | +26.75% | |
| 3Y Return (annualized) | +21.08% | +26.25% | |
| 5Y Return (annualized) | +6.73% | +15.39% | |
| Volatility (annualized) | 21.1% | 30.6% | |
| Max Drawdown | -46.0% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2020 | Mar 10, 1999 |
AFGR vs QQQ Performance
First Trust Active Factor Large Cap Growth ETF (AFGR) is a ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year AFGR returned +9.15% while QQQ returned +26.75%. Year to date, AFGR is up 7.80% versus a gain of 19.68% for QQQ.
Over three years, AFGR compounded at +21.08% per year against +26.25% for QQQ; over five years the annualized figures are +6.73% and +15.39% respectively. Across the full 6-year window we track, QQQ has the edge at +13.15% annualized vs +11.28%. 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 21.1% for AFGR. 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 -46.0% for AFGR 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 0.93. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
AFGR charges 0.85% per year while QQQ charges 0.18%. On a $10,000 position that is $85 vs $18 annually, a gap of $67 per year that compounds over a long holding period. On income, AFGR currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
AFGR and QQQ share 31 holdings out of 147 unique holdings combined, representing a 44.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AFGR or QQQ?
AFGR has an expense ratio of 0.85% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, AFGR or QQQ?
Over the past year AFGR returned +9.15% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), AFGR annualized +11.28% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, AFGR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 21.1% for AFGR. Worst drawdown: AFGR -46.0% vs QQQ -83.0%.
Should I hold both AFGR and QQQ?
AFGR and QQQ have a monthly-return correlation of 0.93, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between AFGR and QQQ?
AFGR and QQQ share 31 common holdings with a 44.6% weight overlap. Combined, they hold 147 unique securities.
Which pays a higher dividend, AFGR or QQQ?
AFGR yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.