FBT vs QQQ
First Trust NYSE Arca Biotechnology Index Fund vs Invesco QQQ Trust, Series 1
Which is better, FBT or QQQ?
Mid Cap Growth against Large Cap Growth.
QQQ has a lower expense ratio. FBT led over 1Y, QQQ over 3Y, 5Y and the full window. FBT is less concentrated, with 38.0% 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 | FBT | QQQ |
|---|---|---|
| Expense Ratio | 0.55% | 0.18%Best |
| AUM | $2.9B | $483.5B |
| Dividend Yield | 0.00% | 0.44% |
| Holdings | 62 | 107 |
| YTD Return | +29.09%Best | +17.95% |
| 1Y Return | +48.91%Best | +21.77% |
| 3Y Return (annualized) | +21.82% | +25.63%Best |
| 5Y Return (annualized) | +9.53% | +15.24%Best |
| Volatility (annualized) | 22.9% | 18.6%Best |
| Max Drawdown | -40.5%Best | -53.5% |
| $10,000 over 5 years | $15,764 | $20,324Best |
| Top 10 Weight | 38.0%Best | 46.5% |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Mid Cap Growth | Large Cap Growth |
| Inception | Jun 19, 2006 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Jun 23, 2006 to Sep 18, 2026 (20.2 years).
FBT 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 20.2 years both funds cover.
FBT vs QQQ Performance
First Trust NYSE Arca Biotechnology Index Fund (FBT) 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 FBT returned +48.91% while QQQ returned +21.77%. Year to date, FBT is up 29.09% versus a gain of 17.95% for QQQ.
Over three years, FBT compounded at +21.82% per year against +25.63% for QQQ; over five years the annualized figures are +9.53% and +15.24% respectively. Across the full 20-year window we track, QQQ has the edge at +15.82% annualized vs +13.82%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FBT has been the more volatile fund, with annualized monthly volatility of 22.9% compared with 18.6% 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 -40.5% for FBT and -53.5% 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 0.58. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FBT charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, FBT currently yields 0.00% against 0.44% for QQQ.
Holdings Overlap
13.4% of FBT's money is in holdings QQQ also owns. 2.2% of QQQ's money is in holdings FBT also owns.
FBT and QQQ share little of their money.
4 positions in common, counted across the 30 positions we hold weights for in FBT and 102 in QQQ, against full books of 62 and 107.
What only one of them owns
Our book lists 92 positions for QQQ that do not appear in our book for FBT (95.4% of the fund), and 21 for FBT that do not appear in QQQ (69.5%).
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.
You are not choosing between two funds in isolation.
Whichever of FBT 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, FBT or QQQ?
FBT has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option, by $37 a year on a $10,000 investment.
Which performed better, FBT or QQQ?
Over the past year FBT returned +48.91% vs +21.77% for QQQ, so FBT leads on 1-year performance. Over the longest common window we track (20 years), FBT annualized +13.82% vs +15.82% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FBT or QQQ?
FBT has been the more volatile fund at 22.9% annualized versus 18.6% for QQQ. Worst drawdown: FBT -40.5% vs QQQ -53.5%.
Should I hold both FBT and QQQ?
FBT and QQQ have a monthly-return correlation of 0.58, 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 FBT and QQQ?
13.4% of FBT's money is in holdings QQQ also owns. 2.2% of QQQ's is in holdings FBT also owns. They hold 4 positions in common, counted across the 30 positions we hold weights for in FBT and 102 in QQQ.
Which pays a higher dividend, FBT or QQQ?
FBT yields 0.00% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.
Is QQQ better than FBT?
QQQ has a lower expense ratio. FBT led over 1Y, QQQ over 3Y, 5Y and the full window. FBT is less concentrated, with 38.0% 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.