FBT vs QQQ
First Trust NYSE Arca Biotechnology Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FBT delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | FBT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.18% | |
| AUM | $2.8B | $496.3B | |
| Dividend Yield | 0.00% | 0.44% | |
| Holdings | 31 | 108 | |
| YTD Return | +30.44% | +16.64% | |
| 1Y Return | +56.54% | +27.27% | |
| 3Y Return (annualized) | +21.27% | +25.96% | |
| 5Y Return (annualized) | +9.73% | +14.54% | |
| Volatility (annualized) | 22.9% | 30.6% | |
| Max Drawdown | -40.5% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 19, 2006 | Mar 10, 1999 |
FBT vs QQQ Performance
First Trust NYSE Arca Biotechnology Index Fund (FBT) 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 FBT returned +56.54% while QQQ returned +27.27%. Year to date, FBT is up 30.44% versus a gain of 16.64% for QQQ.
Over three years, FBT compounded at +21.27% per year against +25.96% for QQQ; over five years the annualized figures are +9.73% and +14.54% respectively. Across the full 20-year window we track, FBT has the edge at +13.93% annualized vs +13.03%. 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 22.9% for FBT. 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 -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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
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
FBT and QQQ share 4 holdings out of 128 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $37 per year of difference.
Which performed better, FBT or QQQ?
Over the past year FBT returned +56.54% vs +27.27% for QQQ, so FBT leads on 1-year performance. Over the longest common window we track (20 years), FBT annualized +13.93% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FBT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.9% for FBT. Worst drawdown: FBT -40.5% vs QQQ -83.0%.
Should I hold both FBT and QQQ?
FBT and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FBT and QQQ?
FBT and QQQ share 4 common holdings with a 2.2% weight overlap. Combined, they hold 128 unique securities.
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.
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