FMB vs QQQ
First Trust Managed Municipal ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FMB offers more diversification with 1,279 holdings.
Side-by-Side Comparison
| Metric | FMB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.18% | |
| AUM | $2.1B | $496.3B | |
| Dividend Yield | 3.62% | 0.44% | |
| Holdings | 1,279 | 108 | |
| YTD Return | +1.02% | +19.52% | |
| 1Y Return | +5.03% | +26.68% | |
| 3Y Return (annualized) | +3.44% | +26.64% | |
| 5Y Return (annualized) | +0.41% | +15.36% | |
| Volatility (annualized) | 4.9% | 30.6% | |
| Max Drawdown | -14.2% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Tax Preferred | Equity | |
| Inception | May 13, 2014 | Mar 10, 1999 |
FMB vs QQQ Performance
First Trust Managed Municipal ETF (FMB) 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 FMB returned +5.03% while QQQ returned +26.68%. Year to date, FMB is up 1.02% versus a gain of 19.52% for QQQ.
Over three years, FMB compounded at +3.44% per year against +26.64% for QQQ; over five years the annualized figures are +0.41% and +15.36% respectively. Across the full 12-year window we track, QQQ has the edge at +13.14% annualized vs +1.37%. 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 4.9% for FMB. 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 -14.2% for FMB 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMB charges 0.39% per year while QQQ charges 0.18%. On a $10,000 position that is $39 vs $18 annually, a gap of $21 per year that compounds over a long holding period. On income, FMB currently yields 3.62% against 0.44% for QQQ.
Holdings Overlap
FMB and QQQ share 0 holdings out of 738 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, FMB or QQQ?
FMB has an expense ratio of 0.39% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, FMB or QQQ?
Over the past year FMB returned +5.03% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (12 years), FMB annualized +1.37% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, FMB or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 4.9% for FMB. Worst drawdown: FMB -14.2% vs QQQ -83.0%.
Should I hold both FMB and QQQ?
FMB and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMB and QQQ?
FMB and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 738 unique securities.
Which pays a higher dividend, FMB or QQQ?
FMB yields 3.62% while QQQ yields 0.44%, so FMB currently pays the higher dividend yield.
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