FAUG vs QQQ
FT Vest US Equity Buffer ETF - August vs Invesco QQQ Trust, Series 1
Which is better, FAUG or QQQ?
Option Writing against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.
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 | FAUG | QQQ |
|---|---|---|
| Expense Ratio | 0.85% | 0.18%Best |
| AUM | $1.3B | $483.5B |
| Dividend Yield | 0.00% | 0.44% |
| Holdings | 10 | 107 |
| YTD Return | +7.66% | +15.21%Best |
| 1Y Return | +10.71% | +19.78%Best |
| 3Y Return (annualized) | +14.12% | +24.58%Best |
| 5Y Return (annualized) | +8.88% | +13.93%Best |
| Volatility (annualized) | 10.7%Best | 20.9% |
| Max Drawdown | -22.3%Best | -35.1% |
| $10,000 over 5 years | $15,302 | $19,195Best |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Alternative | Equity |
| Style | Option Writing | Large Cap Growth |
| Inception | Nov 7, 2019 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 7, 2019 to Sep 16, 2026 (6.9 years).
FAUG 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 6.9 years both funds cover.
FAUG vs QQQ Performance
FT Vest US Equity Buffer ETF - August (FAUG) 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 FAUG returned +10.71% while QQQ returned +19.78%. Year to date, FAUG is up 7.66% versus a gain of 15.21% for QQQ.
Over three years, FAUG compounded at +14.12% per year against +24.58% for QQQ; over five years the annualized figures are +8.88% and +13.93% respectively. Across the full 7-year window we track, QQQ has the edge at +20.69% annualized vs +9.74%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 10.7% for FAUG. 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 -22.3% for FAUG 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FAUG 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, FAUG currently yields 0.00% against 0.44% for QQQ.
You are not choosing between two funds in isolation.
Whichever of FAUG and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FAUG or QQQ?
FAUG has an expense ratio of 0.85% while QQQ charges 0.18%. QQQ is the cheaper option, by $67 a year on a $10,000 investment.
Which performed better, FAUG or QQQ?
Over the past year FAUG returned +10.71% vs +19.78% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (7 years), FAUG annualized +9.74% vs +20.69% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FAUG or QQQ?
QQQ has been the more volatile fund at 20.9% annualized versus 10.7% for FAUG. Worst drawdown: FAUG -22.3% vs QQQ -35.1%.
Should I hold both FAUG and QQQ?
FAUG and QQQ have a monthly-return correlation of 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FAUG or QQQ?
FAUG yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than FAUG?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.