FLTR vs QQQ
VanEck IG Floating Rate ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
FLTR has a lower expense ratio. QQQ delivered stronger 1-year returns. FLTR offers more diversification with 454 holdings.
Side-by-Side Comparison
| Metric | FLTR | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.14% | 0.18% | |
| AUM | $2.9B | $496.3B | |
| Dividend Yield | 4.63% | 0.44% | |
| Holdings | 454 | 108 | |
| YTD Return | +2.82% | +17.30% | |
| 1Y Return | +4.81% | +24.93% | |
| 3Y Return (annualized) | +5.96% | +26.19% | |
| 5Y Return (annualized) | +4.66% | +15.34% | |
| Volatility (annualized) | 13.2% | 30.6% | |
| Max Drawdown | -58.9% | -83.0% | |
| Fund Family | VanEck | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 25, 2011 | Mar 10, 1999 |
FLTR vs QQQ Performance
VanEck IG Floating Rate ETF (FLTR) is a ETF from VanEck and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FLTR returned +4.81% while QQQ returned +24.93%. Year to date, FLTR is up 2.82% versus a gain of 17.30% for QQQ.
Over three years, FLTR compounded at +5.96% per year against +26.19% for QQQ; over five years the annualized figures are +4.66% and +15.34% respectively. Across the full 15-year window we track, QQQ has the edge at +13.06% annualized vs -2.86%. 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 13.2% for FLTR. 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 -58.9% for FLTR 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLTR charges 0.14% per year while QQQ charges 0.18%. On a $10,000 position that is $14 vs $18 annually, a gap of $4 per year that compounds over a long holding period. On income, FLTR currently yields 4.63% against 0.44% for QQQ.
Holdings Overlap
FLTR and QQQ share 0 holdings out of 355 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, FLTR or QQQ?
FLTR has an expense ratio of 0.14% while QQQ charges 0.18%. FLTR is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, FLTR or QQQ?
Over the past year FLTR returned +4.81% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), FLTR annualized -2.86% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, FLTR or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.2% for FLTR. Worst drawdown: FLTR -58.9% vs QQQ -83.0%.
Should I hold both FLTR and QQQ?
FLTR and QQQ have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLTR and QQQ?
FLTR and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 355 unique securities.
Which pays a higher dividend, FLTR or QQQ?
FLTR yields 4.63% while QQQ yields 0.44%, so FLTR currently pays the higher dividend yield.
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