FCTE vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricFCTEQQQWinner
Expense Ratio0.85%0.18%
AUM$246M$496.3B
Dividend Yield0.08%0.44%
Holdings21108
YTD Return+20.45%+19.52%
1Y Return+16.37%+26.68%
3Y Return (annualized)-+26.64%
5Y Return (annualized)-+15.36%
Volatility (annualized)15.6%30.6%
Max Drawdown-19.7%-83.0%
Fund Family3FourteenSMIInvesco (US)
CategoryEquityEquity
InceptionJul 2, 2024Mar 10, 1999

FCTE vs QQQ Performance

SMI 3Fourteen Full-Cycle Trend ETF (FCTE) is a ETF from 3FourteenSMI and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FCTE returned +16.37% while QQQ returned +26.68%. Year to date, FCTE is up 20.45% versus a gain of 19.52% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 15.6% for FCTE. 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 -19.7% for FCTE 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FCTE charges 0.85% per year while QQQ charges 0.18%. On a $10,000 position that is $85 vs $18 annually, a gap of $67 per year that compounds over a long holding period. On income, FCTE currently yields 0.08% against 0.44% for QQQ.

Holdings Overlap

6.3%overlap

FCTE and QQQ share 4 holdings out of 118 unique holdings combined, representing a 6.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FCTEWeight in QQQDifference
AMAT7.16%1.86%5.30%
GOOGL4.32%3.36%0.96%
PEP4.47%0.83%3.64%
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Frequently Asked Questions

Which is cheaper, FCTE or QQQ?

FCTE has an expense ratio of 0.85% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.

Which performed better, FCTE or QQQ?

Over the past year FCTE returned +16.37% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), FCTE annualized +10.47% vs +13.14% for QQQ. Past performance does not guarantee future results.

Which is riskier, FCTE or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 15.6% for FCTE. Worst drawdown: FCTE -19.7% vs QQQ -83.0%.

Should I hold both FCTE and QQQ?

FCTE and QQQ have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FCTE and QQQ?

FCTE and QQQ share 4 common holdings with a 6.3% weight overlap. Combined, they hold 118 unique securities.

Which pays a higher dividend, FCTE or QQQ?

FCTE yields 0.08% while QQQ yields 0.44%, so QQQ currently pays the higher dividend yield.

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