FDL vs QQQ
First Trust Morningstar Dividend Leaders Index Fund vs Invesco QQQ Trust, Series 1
Which is better, FDL or QQQ?
Large Cap Value against Large Cap Growth.
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 48.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FDL | QQQ |
|---|---|---|
| Expense Ratio | 0.43% | 0.18%Best |
| AUM | $8.1B | $486.1B |
| Dividend Yield | 3.59% | 0.44% |
| Holdings | 202 | 107 |
| YTD Return | +20.36%Best | +17.54% |
| 1Y Return | +24.66% | +25.59%Best |
| 3Y Return (annualized) | +20.00% | +24.63%Best |
| 5Y Return (annualized) | +14.01% | +14.18%Best |
| Volatility (annualized) | 16.1%Best | 18.6% |
| Max Drawdown | -68.6% | -53.5%Best |
| $10,000 over 5 years | $19,263 | $19,407Best |
| Top 10 Weight | 48.3% | 46.5%Best |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Growth |
| Inception | Mar 9, 2006 | Mar 10, 1999 |
Volatility and max drawdown are measured over the window both funds cover: Mar 15, 2006 to Sep 4, 2026 (20.5 years).
FDL vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 20.5 years both funds cover.
FDL vs QQQ Performance
First Trust Morningstar Dividend Leaders Index Fund (FDL) is an ETF from First Trust Portfolios (US) and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year FDL returned +24.66% while QQQ returned +25.59%. Year to date, FDL is up 20.36% versus a gain of 17.54% for QQQ.
Over three years, FDL compounded at +20.00% per year against +24.63% for QQQ; over five years the annualized figures are +14.01% and +14.18% respectively. Across the full 21-year window we track, QQQ has the edge at +15.10% annualized vs +5.91%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 16.1% for FDL. 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 -68.6% for FDL and -53.5% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.53. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FDL charges 0.43% per year while QQQ charges 0.18%. On a $10,000 position that is $43 vs $18 annually, a gap of $25 per year that compounds over a long holding period. On income, FDL currently yields 3.59% against 0.44% for QQQ.
Holdings Overlap
12.4% of FDL's money is in holdings QQQ also owns. 2.1% of QQQ's money is in holdings FDL also owns.
FDL and QQQ share little of their money.
6 positions in common, counted across the 100 positions we hold weights for in FDL and 102 in QQQ, against full books of 202 and 107.
What only one of them owns
Our book lists 90 positions for QQQ that do not appear in our book for FDL (95.5% of the fund), and 93 for FDL that do not appear in QQQ (87.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of FDL and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FDL or QQQ?
FDL has an expense ratio of 0.43% while QQQ charges 0.18%. QQQ is the cheaper option, by $25 a year on a $10,000 investment.
Which performed better, FDL or QQQ?
Over the past year FDL returned +24.66% vs +25.59% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (21 years), FDL annualized +5.91% vs +15.10% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FDL or QQQ?
QQQ has been the more volatile fund at 18.6% annualized versus 16.1% for FDL. Worst drawdown: FDL -68.6% vs QQQ -53.5%.
Should I hold both FDL and QQQ?
FDL and QQQ have a monthly-return correlation of 0.53, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FDL and QQQ?
12.4% of FDL's money is in holdings QQQ also owns. 2.1% of QQQ's is in holdings FDL also owns. They hold 6 positions in common, counted across the 100 positions we hold weights for in FDL and 102 in QQQ.
Which pays a higher dividend, FDL or QQQ?
FDL yields 3.59% while QQQ yields 0.44%, so FDL currently pays the higher dividend yield.
Is QQQ better than FDL?
QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. QQQ is less concentrated, with 46.5% of the fund in its ten largest positions against 48.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.