FMAY 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

MetricFMAYQQQWinner
Expense Ratio0.85%0.18%
AUM$1.4B$455.8B
Dividend Yield0.00%0.41%
Holdings5108
YTD Return+7.67%+18.31%
1Y Return+12.27%+25.37%
3Y Return (annualized)+13.59%+25.79%
5Y Return (annualized)+9.27%+15.20%
Volatility (annualized)9.2%30.6%
Max Drawdown-13.6%-83.0%
Fund FamilyFirst Trust Portfolios (US)Invesco (US)
CategoryAlternativeEquity
InceptionMay 15, 2020Mar 10, 1999

FMAY vs QQQ Performance

FT Vest US Equity Buffer ETF - May (FMAY) 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 FMAY returned +12.27% while QQQ returned +25.37%. Year to date, FMAY is up 7.67% versus a gain of 18.31% for QQQ.

Over three years, FMAY compounded at +13.59% per year against +25.79% for QQQ; over five years the annualized figures are +9.27% and +15.20% respectively. Across the full 6-year window we track, QQQ has the edge at +13.10% annualized vs +10.38%. 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 9.2% for FMAY. 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 -13.6% for FMAY 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

FMAY charges 0.85% per year while QQQ charges 0.18%. On a $10,000 position that is $85 vs $18 annually, a gap of $67 per year that compounds over a long holding period. On income, FMAY currently yields 0.00% against 0.41% for QQQ.

Holdings Overlap

0.0%overlap

FMAY and QQQ share 0 holdings out of 104 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, FMAY or QQQ?

FMAY has an expense ratio of 0.85% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $67 per year of difference.

Which performed better, FMAY or QQQ?

Over the past year FMAY returned +12.27% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), FMAY annualized +10.38% vs +13.10% for QQQ. Past performance does not guarantee future results.

Which is riskier, FMAY or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 9.2% for FMAY. Worst drawdown: FMAY -13.6% vs QQQ -83.0%.

Should I hold both FMAY and QQQ?

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

What is the holdings overlap between FMAY and QQQ?

FMAY and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.

Which pays a higher dividend, FMAY or QQQ?

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

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