CARZ vs QQQ
First Trust S-Network Future Vehicles & Technology ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. CARZ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | CARZ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.18% | |
| AUM | $49M | $496.3B | |
| Dividend Yield | 1.33% | 0.44% | |
| Holdings | 105 | 108 | |
| YTD Return | +33.13% | +16.64% | |
| 1Y Return | +65.20% | +27.27% | |
| 3Y Return (annualized) | +28.09% | +25.96% | |
| 5Y Return (annualized) | +15.25% | +14.54% | |
| Volatility (annualized) | 24.2% | 30.6% | |
| Max Drawdown | -51.2% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 9, 2011 | Mar 10, 1999 |
CARZ vs QQQ Performance
First Trust S-Network Future Vehicles & Technology ETF (CARZ) 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 CARZ returned +65.20% while QQQ returned +27.27%. Year to date, CARZ is up 33.13% versus a gain of 16.64% for QQQ.
Over three years, CARZ compounded at +28.09% per year against +25.96% for QQQ; over five years the annualized figures are +15.25% and +14.54% respectively. Across the full 15-year window we track, QQQ has the edge at +13.03% annualized vs +10.38%. 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 24.2% for CARZ. 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 -51.2% for CARZ 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CARZ charges 0.70% per year while QQQ charges 0.18%. On a $10,000 position that is $70 vs $18 annually, a gap of $52 per year that compounds over a long holding period. On income, CARZ currently yields 1.33% against 0.44% for QQQ.
Holdings Overlap
CARZ and QQQ share 15 holdings out of 186 unique holdings combined, representing a 34.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CARZ or QQQ?
CARZ has an expense ratio of 0.70% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $52 per year of difference.
Which performed better, CARZ or QQQ?
Over the past year CARZ returned +65.20% vs +27.27% for QQQ, so CARZ leads on 1-year performance. Over the longest common window we track (15 years), CARZ annualized +10.38% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, CARZ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 24.2% for CARZ. Worst drawdown: CARZ -51.2% vs QQQ -83.0%.
Should I hold both CARZ and QQQ?
CARZ and QQQ have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CARZ and QQQ?
CARZ and QQQ share 15 common holdings with a 34.6% weight overlap. Combined, they hold 186 unique securities.
Which pays a higher dividend, CARZ or QQQ?
CARZ yields 1.33% while QQQ yields 0.44%, so CARZ currently pays the higher dividend yield.
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