FDEC vs QQQ
FT Vest US Equity Buffer ETF - December 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 103 holdings.
Side-by-Side Comparison
| Metric | FDEC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.18% | |
| AUM | $1.3B | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 5 | 108 | |
| YTD Return | +8.70% | +17.85% | |
| 1Y Return | +16.71% | +26.45% | |
| 3Y Return (annualized) | +15.39% | +26.07% | |
| 5Y Return (annualized) | +10.63% | +15.16% | |
| Volatility (annualized) | 10.2% | 30.6% | |
| Max Drawdown | -15.7% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 18, 2020 | Mar 10, 1999 |
FDEC vs QQQ Performance
FT Vest US Equity Buffer ETF - December (FDEC) 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 FDEC returned +16.71% while QQQ returned +26.45%. Year to date, FDEC is up 8.70% versus a gain of 17.85% for QQQ.
Over three years, FDEC compounded at +15.39% per year against +26.07% for QQQ; over five years the annualized figures are +10.63% and +15.16% respectively. Across the full 6-year window we track, QQQ has the edge at +13.09% annualized vs +11.42%. 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 10.2% for FDEC. 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 -15.7% for FDEC 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FDEC 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, FDEC currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
FDEC and QQQ share 0 holdings out of 104 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, FDEC or QQQ?
FDEC 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, FDEC or QQQ?
Over the past year FDEC returned +16.71% vs +26.45% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), FDEC annualized +11.42% vs +13.09% for QQQ. Past performance does not guarantee future results.
Which is riskier, FDEC or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.2% for FDEC. Worst drawdown: FDEC -15.7% vs QQQ -83.0%.
Should I hold both FDEC and QQQ?
FDEC and QQQ have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FDEC and QQQ?
FDEC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, FDEC or QQQ?
FDEC yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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