FCTR vs QQQ
First Trust Lunt US Factor Rotation ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FCTR offers more diversification with 163 holdings.
Side-by-Side Comparison
| Metric | FCTR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.18% | |
| AUM | $57M | $496.3B | |
| Dividend Yield | 0.50% | 0.44% | |
| Holdings | 163 | 108 | |
| YTD Return | +11.78% | +19.52% | |
| 1Y Return | +19.55% | +26.68% | |
| 3Y Return (annualized) | +17.52% | +26.64% | |
| 5Y Return (annualized) | +3.47% | +15.36% | |
| Volatility (annualized) | 20.0% | 30.6% | |
| Max Drawdown | -37.1% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 23, 2018 | Mar 10, 1999 |
FCTR vs QQQ Performance
First Trust Lunt US Factor Rotation ETF (FCTR) 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 FCTR returned +19.55% while QQQ returned +26.68%. Year to date, FCTR is up 11.78% versus a gain of 19.52% for QQQ.
Over three years, FCTR compounded at +17.52% per year against +26.64% for QQQ; over five years the annualized figures are +3.47% and +15.36% respectively. Across the full 8-year window we track, QQQ has the edge at +13.14% annualized vs +9.82%. 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 20.0% for FCTR. 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 -37.1% for FCTR 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FCTR charges 0.65% per year while QQQ charges 0.18%. On a $10,000 position that is $65 vs $18 annually, a gap of $47 per year that compounds over a long holding period. On income, FCTR currently yields 0.50% against 0.44% for QQQ.
Holdings Overlap
FCTR and QQQ share 25 holdings out of 244 unique holdings combined, representing a 7.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FCTR or QQQ?
FCTR has an expense ratio of 0.65% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $47 per year of difference.
Which performed better, FCTR or QQQ?
Over the past year FCTR returned +19.55% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (8 years), FCTR annualized +9.82% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, FCTR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.0% for FCTR. Worst drawdown: FCTR -37.1% vs QQQ -83.0%.
Should I hold both FCTR and QQQ?
FCTR and QQQ have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCTR and QQQ?
FCTR and QQQ share 25 common holdings with a 7.1% weight overlap. Combined, they hold 244 unique securities.
Which pays a higher dividend, FCTR or QQQ?
FCTR yields 0.50% while QQQ yields 0.44%, so FCTR currently pays the higher dividend yield.
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