FEBT vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricFEBTQQQWinner
Expense Ratio0.74%0.18%
AUM$158M$455.8B
Dividend Yield0.00%0.41%
Holdings5108
YTD Return+10.07%+18.31%
1Y Return+16.30%+25.37%
3Y Return (annualized)+15.84%+25.79%
5Y Return (annualized)-+15.20%
Volatility (annualized)8.3%30.6%
Max Drawdown-13.2%-83.0%
Fund FamilyAllianzIMInvesco (US)
CategoryAlternativeEquity
InceptionJan 31, 2023Mar 10, 1999

FEBT vs QQQ Performance

AllianzIM US Equity Buffer10 Feb ETF (FEBT) is a ETF from AllianzIM and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FEBT returned +16.30% while QQQ returned +25.37%. Year to date, FEBT is up 10.07% versus a gain of 18.31% for QQQ.

Over three years, FEBT compounded at +15.84% per year against +25.79% for QQQ. Across the full 4-year window we track, FEBT has the edge at +15.72% annualized vs +13.10%. 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 8.3% for FEBT. 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 -13.2% for FEBT 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FEBT charges 0.74% per year while QQQ charges 0.18%. On a $10,000 position that is $74 vs $18 annually, a gap of $56 per year that compounds over a long holding period. On income, FEBT currently yields 0.00% against 0.41% for QQQ.

Frequently Asked Questions

Which is cheaper, FEBT or QQQ?

FEBT has an expense ratio of 0.74% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $56 per year of difference.

Which performed better, FEBT or QQQ?

Over the past year FEBT returned +16.30% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), FEBT annualized +15.72% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, FEBT or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 8.3% for FEBT. Worst drawdown: FEBT -13.2% vs QQQ -83.0%.

Should I hold both FEBT and QQQ?

FEBT and QQQ have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, FEBT or QQQ?

FEBT yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.

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