FCVT vs QQQ
First Trust SSI Strategic Convertible Securities ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FCVT delivered stronger 1-year returns. FCVT offers more diversification with 137 holdings.
Side-by-Side Comparison
| Metric | FCVT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.18% | |
| AUM | $104M | $496.3B | |
| Dividend Yield | 1.14% | 0.44% | |
| Holdings | 137 | 108 | |
| YTD Return | +19.38% | +19.52% | |
| 1Y Return | +31.31% | +26.68% | |
| 3Y Return (annualized) | +19.53% | +26.64% | |
| 5Y Return (annualized) | +6.59% | +15.36% | |
| Volatility (annualized) | 14.4% | 30.6% | |
| Max Drawdown | -32.3% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Convertible | Equity | |
| Inception | Nov 3, 2015 | Mar 10, 1999 |
FCVT vs QQQ Performance
First Trust SSI Strategic Convertible Securities ETF (FCVT) 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 FCVT returned +31.31% while QQQ returned +26.68%. Year to date, FCVT is up 19.38% versus a gain of 19.52% for QQQ.
Over three years, FCVT compounded at +19.53% per year against +26.64% for QQQ; over five years the annualized figures are +6.59% and +15.36% respectively. Across the full 11-year window we track, QQQ has the edge at +13.14% annualized vs +9.90%. 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 14.4% for FCVT. 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 -32.3% for FCVT 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FCVT charges 0.95% per year while QQQ charges 0.18%. On a $10,000 position that is $95 vs $18 annually, a gap of $77 per year that compounds over a long holding period. On income, FCVT currently yields 1.14% against 0.44% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, FCVT or QQQ?
FCVT has an expense ratio of 0.95% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, FCVT or QQQ?
Over the past year FCVT returned +31.31% vs +26.68% for QQQ, so FCVT leads on 1-year performance. Over the longest common window we track (11 years), FCVT annualized +9.90% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, FCVT or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 14.4% for FCVT. Worst drawdown: FCVT -32.3% vs QQQ -83.0%.
Should I hold both FCVT and QQQ?
FCVT and QQQ have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FCVT and QQQ?
FCVT and QQQ share 2 common holdings with a 1.6% weight overlap. Combined, they hold 151 unique securities.
Which pays a higher dividend, FCVT or QQQ?
FCVT yields 1.14% while QQQ yields 0.44%, so FCVT currently pays the higher dividend yield.
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