FGD vs QQQ
First Trust Dow Jones Global Select Dividend Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. FGD delivered stronger 1-year returns. FGD offers more diversification with 109 holdings.
Side-by-Side Comparison
| Metric | FGD | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.18% | |
| AUM | $1.6B | $496.3B | |
| Dividend Yield | 5.04% | 0.44% | |
| Holdings | 109 | 108 | |
| YTD Return | +18.25% | +17.07% | |
| 1Y Return | +31.11% | +26.39% | |
| 3Y Return (annualized) | +26.11% | +26.08% | |
| 5Y Return (annualized) | +13.30% | +15.18% | |
| Volatility (annualized) | 20.2% | 30.6% | |
| Max Drawdown | -70.2% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Nov 21, 2007 | Mar 10, 1999 |
FGD vs QQQ Performance
First Trust Dow Jones Global Select Dividend Index Fund (FGD) 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 FGD returned +31.11% while QQQ returned +26.39%. Year to date, FGD is up 18.25% versus a gain of 17.07% for QQQ.
Over three years, FGD compounded at +26.11% per year against +26.08% for QQQ; over five years the annualized figures are +13.30% and +15.18% respectively. Across the full 19-year window we track, QQQ has the edge at +13.05% annualized vs +2.61%. 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 20.2% for FGD. 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 -70.2% for FGD 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FGD charges 0.55% per year while QQQ charges 0.18%. On a $10,000 position that is $55 vs $18 annually, a gap of $37 per year that compounds over a long holding period. On income, FGD currently yields 5.04% against 0.44% for QQQ.
Holdings Overlap
FGD and QQQ share 0 holdings out of 201 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, FGD or QQQ?
FGD has an expense ratio of 0.55% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $37 per year of difference.
Which performed better, FGD or QQQ?
Over the past year FGD returned +31.11% vs +26.39% for QQQ, so FGD leads on 1-year performance. Over the longest common window we track (19 years), FGD annualized +2.61% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FGD or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 20.2% for FGD. Worst drawdown: FGD -70.2% vs QQQ -83.0%.
Should I hold both FGD and QQQ?
FGD and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FGD and QQQ?
FGD and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 201 unique securities.
Which pays a higher dividend, FGD or QQQ?
FGD yields 5.04% while QQQ yields 0.44%, so FGD currently pays the higher dividend yield.
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