EDOW vs QQQ
First Trust Dow 30 Equal Weight ETF vs Invesco QQQ Trust, Series 1
Which is better, EDOW or QQQ?
Large Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. EDOW is less concentrated, with 37.8% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | EDOW | QQQ |
|---|---|---|
| Expense Ratio | 0.50% | 0.18%Best |
| AUM | $324M | $483.5B |
| Dividend Yield | 1.21% | 0.44% |
| Holdings | 62 | 107 |
| YTD Return | +10.47% | +16.87%Best |
| 1Y Return | +15.57% | +22.98%Best |
| 3Y Return (annualized) | +16.44% | +24.98%Best |
| 5Y Return (annualized) | +9.95% | +14.39%Best |
| Volatility (annualized) | 15.4%Best | 19.8% |
| Max Drawdown | -33.7%Best | -35.1% |
| $10,000 over 5 years | $16,069 | $19,586Best |
| Top 10 Weight | 37.8%Best | 46.5% |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Aug 8, 2017 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Aug 9, 2017 to Sep 11, 2026 (9.1 years).
EDOW vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9.1 years both funds cover.
EDOW vs QQQ Performance
First Trust Dow 30 Equal Weight ETF (EDOW) is an ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year EDOW returned +15.57% while QQQ returned +22.98%. Year to date, EDOW is up 10.47% versus a gain of 16.87% for QQQ.
Over three years, EDOW compounded at +16.44% per year against +24.98% for QQQ; over five years the annualized figures are +9.95% and +14.39% respectively. Across the full 9-year window we track, QQQ has the edge at +19.69% annualized vs +10.65%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 19.8% compared with 15.4% for EDOW. 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 -33.7% for EDOW and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EDOW charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, EDOW currently yields 1.21% against 0.44% for QQQ.
Holdings Overlap
30.0% of EDOW's money is in holdings QQQ also owns. 35.3% of QQQ's money is in holdings EDOW also owns.
The two portfolios partly overlap.
9 positions in common, counted across the 30 positions we hold weights for in EDOW and 102 in QQQ, against full books of 62 and 107.
What only one of them owns
Our book lists 86 positions for QQQ that do not appear in our book for EDOW (61.7% of the fund), and 21 for EDOW that do not appear in QQQ (69.8%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in EDOW | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 3.42% | 8.44% | 5.02% |
| AAPLApple, Inc | 3.38% | 7.27% | 3.89% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 3.97% | 5.76% | 1.79% |
| AMZNAmazon.Com Inc | 3.39% | 4.67% | 1.28% |
| GOOGLAlphabet A Usd 0.001 | 3.10% | 3.36% | 0.26% |
| WMTWalmart, Inc. | 2.70% | 2.41% | 0.29% |
| CSCOCisco Systems Inc. - Ordinary Shares | 2.89% | 2.10% | 0.79% |
| AMGNAmgen Inc. | 3.95% | 0.97% | 2.98% |
| HONHoneywell International Inc | 3.17% | 0.35% | 2.82% |
35.3% of QQQ is already inside EDOW.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, EDOW or QQQ?
EDOW has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, EDOW or QQQ?
Over the past year EDOW returned +15.57% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), EDOW annualized +10.65% vs +19.69% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, EDOW or QQQ?
QQQ has been the more volatile fund at 19.8% annualized versus 15.4% for EDOW. Worst drawdown: EDOW -33.7% vs QQQ -35.1%.
Should I hold both EDOW and QQQ?
EDOW and QQQ have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between EDOW and QQQ?
35.3% of QQQ's money is in holdings EDOW also owns. 35.3% of QQQ's is in holdings EDOW also owns. They hold 9 positions in common, counted across the 30 positions we hold weights for in EDOW and 102 in QQQ.
Which pays a higher dividend, EDOW or QQQ?
EDOW yields 1.21% while QQQ yields 0.44%, so EDOW currently pays the higher dividend yield.
Is QQQ better than EDOW?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. EDOW is less concentrated, with 37.8% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.