FIW vs QQQ
First Trust Water ETF 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 108 holdings.
Side-by-Side Comparison
| Metric | FIW | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $1.9B | $496.3B | |
| Dividend Yield | 0.72% | 0.44% | |
| Holdings | 38 | 108 | |
| YTD Return | +1.25% | +16.23% | |
| 1Y Return | -1.45% | +26.23% | |
| 3Y Return (annualized) | +9.00% | +25.75% | |
| 5Y Return (annualized) | +5.14% | +14.78% | |
| Volatility (annualized) | 18.8% | 30.6% | |
| Max Drawdown | -53.1% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Mar 10, 1999 |
FIW vs QQQ Performance
First Trust Water ETF (FIW) 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 FIW returned -1.45% while QQQ returned +26.23%. Year to date, FIW is up 1.25% versus a gain of 16.23% for QQQ.
Over three years, FIW compounded at +9.00% per year against +25.75% for QQQ; over five years the annualized figures are +5.14% and +14.78% respectively. Across the full 19-year window we track, QQQ has the edge at +13.02% annualized vs +9.42%. 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 18.8% for FIW. 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 -53.1% for FIW 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FIW charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, FIW currently yields 0.72% against 0.44% for QQQ.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, FIW or QQQ?
FIW has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, FIW or QQQ?
Over the past year FIW returned -1.45% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), FIW annualized +9.42% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, FIW or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 18.8% for FIW. Worst drawdown: FIW -53.1% vs QQQ -83.0%.
Should I hold both FIW and QQQ?
FIW and QQQ have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FIW and QQQ?
FIW and QQQ share 2 common holdings with a 0.4% weight overlap. Combined, they hold 136 unique securities.
Which pays a higher dividend, FIW or QQQ?
FIW yields 0.72% while QQQ yields 0.44%, so FIW currently pays the higher dividend yield.
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