FCFY vs QQQ
First Trust S&P 500 Diversified Free Cash Flow 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 | FCFY | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.60% | 0.18% | |
| AUM | $2M | $496.3B | |
| Dividend Yield | 1.41% | 0.44% | |
| Holdings | 101 | 108 | |
| YTD Return | +9.30% | +17.30% | |
| 1Y Return | +16.61% | +24.93% | |
| 3Y Return (annualized) | +16.50% | +26.19% | |
| 5Y Return (annualized) | - | +15.34% | |
| Volatility (annualized) | 15.2% | 30.6% | |
| Max Drawdown | -21.4% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 23, 2023 | Mar 10, 1999 |
FCFY vs QQQ Performance
First Trust S&P 500 Diversified Free Cash Flow ETF (FCFY) 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 FCFY returned +16.61% while QQQ returned +24.93%. Year to date, FCFY is up 9.30% versus a gain of 17.30% for QQQ.
Over three years, FCFY compounded at +16.50% per year against +26.19% for QQQ. Across the full 3-year window we track, FCFY has the edge at +16.50% annualized vs +13.06%. 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 15.2% for FCFY. 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 -21.4% for FCFY 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FCFY charges 0.60% per year while QQQ charges 0.18%. On a $10,000 position that is $60 vs $18 annually, a gap of $42 per year that compounds over a long holding period. On income, FCFY currently yields 1.41% against 0.44% for QQQ.
Holdings Overlap
FCFY and QQQ share 13 holdings out of 189 unique holdings combined, representing a 4.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FCFY or QQQ?
FCFY has an expense ratio of 0.60% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, FCFY or QQQ?
Over the past year FCFY returned +16.61% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), FCFY annualized +16.50% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, FCFY or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.2% for FCFY. Worst drawdown: FCFY -21.4% vs QQQ -83.0%.
Should I hold both FCFY and QQQ?
FCFY and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCFY and QQQ?
FCFY and QQQ share 13 common holdings with a 4.6% weight overlap. Combined, they hold 189 unique securities.
Which pays a higher dividend, FCFY or QQQ?
FCFY yields 1.41% while QQQ yields 0.44%, so FCFY currently pays the higher dividend yield.
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