FAN vs QQQ
First Trust Global Wind Energy ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FAN delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FAN | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $256M | $496.3B | |
| Dividend Yield | 0.99% | 0.44% | |
| Holdings | 57 | 108 | |
| YTD Return | +12.73% | +16.64% | |
| 1Y Return | +28.47% | +27.27% | |
| 3Y Return (annualized) | +16.44% | +25.96% | |
| 5Y Return (annualized) | +3.28% | +14.54% | |
| Volatility (annualized) | 24.7% | 30.6% | |
| Max Drawdown | -82.1% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 16, 2008 | Mar 10, 1999 |
FAN vs QQQ Performance
First Trust Global Wind Energy ETF (FAN) 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 FAN returned +28.47% while QQQ returned +27.27%. Year to date, FAN is up 12.73% versus a gain of 16.64% for QQQ.
Over three years, FAN compounded at +16.44% per year against +25.96% for QQQ; over five years the annualized figures are +3.28% and +14.54% respectively. Across the full 18-year window we track, QQQ has the edge at +13.03% annualized vs -1.05%. 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 24.7% for FAN. 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 -82.1% for FAN 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAN charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, FAN currently yields 0.99% against 0.44% for QQQ.
Holdings Overlap
FAN and QQQ share 0 holdings out of 149 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FAN or QQQ?
FAN has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, FAN or QQQ?
Over the past year FAN returned +28.47% vs +27.27% for QQQ, so FAN leads on 1-year performance. Over the longest common window we track (18 years), FAN annualized -1.05% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FAN or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 24.7% for FAN. Worst drawdown: FAN -82.1% vs QQQ -83.0%.
Should I hold both FAN and QQQ?
FAN and QQQ have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAN and QQQ?
FAN and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 149 unique securities.
Which pays a higher dividend, FAN or QQQ?
FAN yields 0.99% while QQQ yields 0.44%, so FAN currently pays the higher dividend yield.
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