FAI vs QQQ
First Trust Bloomberg Artificial Intelligence ETF vs Invesco QQQ Trust, Series 1
Which is better, FAI or QQQ?
Nearly the same fund. QQQ costs less.
QQQ has a lower expense ratio. FAI led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.97. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 62.9%.
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 | FAI | QQQ |
|---|---|---|
| Expense Ratio | 0.65% | 0.18%Best |
| AUM | $175M | $486.1B |
| Dividend Yield | 0.00% | 0.44% |
| Holdings | 108 | 107 |
| YTD Return | +32.56%Best | +17.54% |
| 1Y Return | +47.87%Best | +25.59% |
| 3Y Return (annualized) | - | +24.63% |
| 5Y Return (annualized) | - | +14.18% |
| Volatility (annualized) | 30.8% | 19.1%Best |
| Max Drawdown | -27.8% | -22.8%Best |
| $10,000 over 1.8 years | $18,247Best | $14,409 |
| Top 10 Weight | 62.9% | 46.5%Best |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Growth |
| Inception | Nov 20, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 1.8 years row, are measured over the window both funds cover: Nov 21, 2024 to Sep 4, 2026 (1.8 years).
FAI 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 1.8 years both funds cover.
FAI vs QQQ Performance
First Trust Bloomberg Artificial Intelligence ETF (FAI) 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 FAI returned +47.87% while QQQ returned +25.59%. Year to date, FAI is up 32.56% versus a gain of 17.54% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FAI has been the more volatile fund, with annualized monthly volatility of 30.8% compared with 19.1% for QQQ. 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 -27.8% for FAI and -22.8% 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FAI charges 0.65% per year while QQQ charges 0.18%. On a $10,000 position that is $65 vs $18 annually, a gap of $47 per year that compounds over a long holding period. On income, FAI currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
74.3% of FAI's money is in holdings QQQ also owns. 44.7% of QQQ's money is in holdings FAI also owns.
Most of FAI is already inside QQQ. Owning both mostly buys the same companies twice.
23 positions in common, counted across the 50 positions we hold weights for in FAI and 102 in QQQ, against full books of 108 and 107.
What only one of them owns
Our book lists 74 positions for QQQ that do not appear in our book for FAI (53.6% of the fund), and 20 for FAI that do not appear in QQQ (13.5%).
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 FAI | Weight in QQQ | Difference |
|---|---|---|---|
| NVDANvidia Corp. | 8.58% | 8.44% | 0.14% |
| MSFTMicrosoft Corp 4.100 Feb 06 37 | 9.52% | 5.76% | 3.76% |
| AMZNAmazon.Com Inc | 8.57% | 4.67% | 3.90% |
| AVGOBroadcom Inc | 8.85% | 3.16% | 5.69% |
| GOOGLAlphabet Inc.Class A | 7.68% | 3.36% | 4.32% |
| MUMicron Technology, Inc. | 3.49% | 4.43% | 0.94% |
| AMDAdvanced Micro Devices Inc | 3.55% | 3.45% | 0.10% |
| METAMeta Platform Inc | 3.85% | 2.78% | 1.07% |
| PLTRPalantir Technologies Inc | 4.67% | 1.60% | 3.07% |
| MRVLMarvell Technology Group Ltd. | 2.82% | 0.81% | 2.01% |
74.3% of FAI is already inside QQQ.
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, FAI or QQQ?
FAI has an expense ratio of 0.65% while QQQ charges 0.18%. QQQ is the cheaper option, by $47 a year on a $10,000 investment.
Which performed better, FAI or QQQ?
Over the past year FAI returned +47.87% vs +25.59% for QQQ, so FAI leads on 1-year performance. Over the longest common window we track (2 years), FAI annualized +39.67% vs +22.50% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAI or QQQ?
FAI has been the more volatile fund at 30.8% annualized versus 19.1% for QQQ. Worst drawdown: FAI -27.8% vs QQQ -22.8%.
Should I hold both FAI and QQQ?
FAI and QQQ have a monthly-return correlation of 0.97, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FAI and QQQ?
74.3% of FAI's money is in holdings QQQ also owns. 44.7% of QQQ's is in holdings FAI also owns. They hold 23 positions in common, counted across the 50 positions we hold weights for in FAI and 102 in QQQ.
Which pays a higher dividend, FAI or QQQ?
FAI yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than FAI?
QQQ has a lower expense ratio. FAI led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.97. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 62.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.