FPEI vs QQQ
First Trust Institutional Preferred Securities and Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FPEI offers more diversification with 176 holdings.
Side-by-Side Comparison
| Metric | FPEI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.18% | |
| AUM | $1.9B | $496.3B | |
| Dividend Yield | 5.82% | 0.44% | |
| Holdings | 176 | 108 | |
| YTD Return | +1.26% | +16.64% | |
| 1Y Return | +4.85% | +27.27% | |
| 3Y Return (annualized) | +9.61% | +25.96% | |
| 5Y Return (annualized) | +3.73% | +14.54% | |
| Volatility (annualized) | 8.1% | 30.6% | |
| Max Drawdown | -27.8% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Aug 22, 2017 | Mar 10, 1999 |
FPEI vs QQQ Performance
First Trust Institutional Preferred Securities and Income ETF (FPEI) 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 FPEI returned +4.85% while QQQ returned +27.27%. Year to date, FPEI is up 1.26% versus a gain of 16.64% for QQQ.
Over three years, FPEI compounded at +9.61% per year against +25.96% for QQQ; over five years the annualized figures are +3.73% and +14.54% respectively. Across the full 9-year window we track, QQQ has the edge at +13.03% annualized vs +2.75%. 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 8.1% for FPEI. 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 -27.8% for FPEI 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FPEI 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, FPEI currently yields 5.82% against 0.44% for QQQ.
Holdings Overlap
FPEI and QQQ share 0 holdings out of 222 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, FPEI or QQQ?
FPEI 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, FPEI or QQQ?
Over the past year FPEI returned +4.85% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (9 years), FPEI annualized +2.75% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, FPEI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.1% for FPEI. Worst drawdown: FPEI -27.8% vs QQQ -83.0%.
Should I hold both FPEI and QQQ?
FPEI and QQQ have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FPEI and QQQ?
FPEI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 222 unique securities.
Which pays a higher dividend, FPEI or QQQ?
FPEI yields 5.82% while QQQ yields 0.44%, so FPEI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.