FOWF vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: QQQ

Side-by-Side Comparison

MetricFOWFQQQWinner
Expense Ratio0.49%0.18%
AUM$16M$455.8B
Dividend Yield0.76%0.41%
Holdings94108
YTD Return+18.03%+19.68%
1Y Return+24.59%+26.75%
3Y Return (annualized)-+26.25%
5Y Return (annualized)-+15.39%
Volatility (annualized)12.7%30.6%
Max Drawdown-12.3%-83.0%
Fund FamilyPacer ETFsInvesco (US)
CategoryEquityEquity
InceptionDec 17, 2024Mar 10, 1999

FOWF vs QQQ Performance

Pacer Solactive Whitney Future of Warfare ETF (FOWF) is a ETF from Pacer ETFs and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year FOWF returned +24.59% while QQQ returned +26.75%. Year to date, FOWF is up 18.03% versus a gain of 19.68% for QQQ.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 12.7% for FOWF. 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 -12.3% for FOWF 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FOWF charges 0.49% per year while QQQ charges 0.18%. On a $10,000 position that is $49 vs $18 annually, a gap of $31 per year that compounds over a long holding period. On income, FOWF currently yields 0.76% against 0.41% for QQQ.

Holdings Overlap

10.5%overlap

FOWF and QQQ share 19 holdings out of 177 unique holdings combined, representing a 10.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FOWFWeight in QQQDifference
NVDA0.61%7.88%7.27%
MSFT0.60%4.65%4.05%
AMZN0.58%4.26%3.68%
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Frequently Asked Questions

Which is cheaper, FOWF or QQQ?

FOWF has an expense ratio of 0.49% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $31 per year of difference.

Which performed better, FOWF or QQQ?

Over the past year FOWF returned +24.59% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), FOWF annualized +30.36% vs +13.15% for QQQ. Past performance does not guarantee future results.

Which is riskier, FOWF or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 12.7% for FOWF. Worst drawdown: FOWF -12.3% vs QQQ -83.0%.

Should I hold both FOWF and QQQ?

FOWF and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FOWF and QQQ?

FOWF and QQQ share 19 common holdings with a 10.5% weight overlap. Combined, they hold 177 unique securities.

Which pays a higher dividend, FOWF or QQQ?

FOWF yields 0.76% while QQQ yields 0.41%, so FOWF currently pays the higher dividend yield.

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