FBDC vs QQQ
FT Confluence BDC & Specialty Finance Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FBDC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 13.69% | 0.18% | |
| AUM | $36M | $496.3B | |
| Dividend Yield | 13.39% | 0.44% | |
| Holdings | 22 | 108 | |
| YTD Return | -2.87% | +17.30% | |
| 1Y Return | -6.45% | +24.93% | |
| 3Y Return (annualized) | - | +26.19% | |
| 5Y Return (annualized) | - | +15.34% | |
| Volatility (annualized) | 16.5% | 30.6% | |
| Max Drawdown | -20.6% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 25, 2007 | Mar 10, 1999 |
FBDC vs QQQ Performance
FT Confluence BDC & Specialty Finance Income ETF (FBDC) 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 FBDC returned -6.45% while QQQ returned +24.93%. Year to date, FBDC is down 2.87% versus a gain of 17.30% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 16.5% for FBDC. 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 -20.6% for FBDC 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 0.21. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FBDC charges 13.69% per year while QQQ charges 0.18%. On a $10,000 position that is $1369 vs $18 annually, a gap of $1351 per year that compounds over a long holding period. On income, FBDC currently yields 13.39% against 0.44% for QQQ.
Holdings Overlap
FBDC and QQQ share 0 holdings out of 122 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, FBDC or QQQ?
FBDC has an expense ratio of 13.69% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $1351 per year of difference.
Which performed better, FBDC or QQQ?
Over the past year FBDC returned -6.45% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (1 years), FBDC annualized -4.20% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, FBDC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 16.5% for FBDC. Worst drawdown: FBDC -20.6% vs QQQ -83.0%.
Should I hold both FBDC and QQQ?
FBDC and QQQ have a monthly-return correlation of 0.21, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FBDC and QQQ?
FBDC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 122 unique securities.
Which pays a higher dividend, FBDC or QQQ?
FBDC yields 13.39% while QQQ yields 0.44%, so FBDC currently pays the higher dividend yield.
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