FMF vs QQQ
First Trust Managed Futures Strategy Fund 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 | FMF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.18% | |
| AUM | $261M | $496.3B | |
| Dividend Yield | 5.05% | 0.44% | |
| Holdings | 11 | 108 | |
| YTD Return | +7.01% | +17.07% | |
| 1Y Return | +11.94% | +26.39% | |
| 3Y Return (annualized) | +5.38% | +26.08% | |
| 5Y Return (annualized) | +4.90% | +15.18% | |
| Volatility (annualized) | 7.3% | 30.6% | |
| Max Drawdown | -24.8% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Alternative | Equity | |
| Inception | Aug 1, 2013 | Mar 10, 1999 |
FMF vs QQQ Performance
First Trust Managed Futures Strategy Fund (FMF) 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 FMF returned +11.94% while QQQ returned +26.39%. Year to date, FMF is up 7.01% versus a gain of 17.07% for QQQ.
Over three years, FMF compounded at +5.38% per year against +26.08% for QQQ; over five years the annualized figures are +4.90% and +15.18% respectively. Across the full 13-year window we track, QQQ has the edge at +13.05% annualized vs +1.41%. 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 7.3% for FMF. 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 -24.8% for FMF 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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMF charges 0.98% per year while QQQ charges 0.18%. On a $10,000 position that is $98 vs $18 annually, a gap of $80 per year that compounds over a long holding period. On income, FMF currently yields 5.05% against 0.44% for QQQ.
Holdings Overlap
FMF 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, FMF or QQQ?
FMF has an expense ratio of 0.98% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $80 per year of difference.
Which performed better, FMF or QQQ?
Over the past year FMF returned +11.94% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), FMF annualized +1.41% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FMF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 7.3% for FMF. Worst drawdown: FMF -24.8% vs QQQ -83.0%.
Should I hold both FMF and QQQ?
FMF and QQQ have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMF and QQQ?
FMF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 104 unique securities.
Which pays a higher dividend, FMF or QQQ?
FMF yields 5.05% while QQQ yields 0.44%, so FMF currently pays the higher dividend yield.
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