FCAL vs QQQ
First Trust California Municipal High income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FCAL offers more diversification with 281 holdings.
Side-by-Side Comparison
| Metric | FCAL | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.18% | |
| AUM | $223M | $496.3B | |
| Dividend Yield | 3.43% | 0.44% | |
| Holdings | 281 | 108 | |
| YTD Return | +0.81% | +17.07% | |
| 1Y Return | +5.24% | +26.39% | |
| 3Y Return (annualized) | +3.43% | +26.08% | |
| 5Y Return (annualized) | +0.28% | +15.18% | |
| Volatility (annualized) | 5.7% | 30.6% | |
| Max Drawdown | -14.8% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 21, 2017 | Mar 10, 1999 |
FCAL vs QQQ Performance
First Trust California Municipal High income ETF (FCAL) 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 FCAL returned +5.24% while QQQ returned +26.39%. Year to date, FCAL is up 0.81% versus a gain of 17.07% for QQQ.
Over three years, FCAL compounded at +3.43% per year against +26.08% for QQQ; over five years the annualized figures are +0.28% and +15.18% respectively. Across the full 9-year window we track, QQQ has the edge at +13.05% annualized vs +1.36%. 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 5.7% for FCAL. 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 -14.8% for FCAL 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FCAL charges 0.49% per year while QQQ charges 0.18%. On a $10,000 position that is $49 vs $18 annually, a gap of $31 per year that compounds over a long holding period. On income, FCAL currently yields 3.43% against 0.44% for QQQ.
Holdings Overlap
FCAL and QQQ share 0 holdings out of 265 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, FCAL or QQQ?
FCAL has an expense ratio of 0.49% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, FCAL or QQQ?
Over the past year FCAL returned +5.24% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), FCAL annualized +1.36% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FCAL or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 5.7% for FCAL. Worst drawdown: FCAL -14.8% vs QQQ -83.0%.
Should I hold both FCAL and QQQ?
FCAL and QQQ have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCAL and QQQ?
FCAL and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 265 unique securities.
Which pays a higher dividend, FCAL or QQQ?
FCAL yields 3.43% while QQQ yields 0.44%, so FCAL currently pays the higher dividend yield.
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