FPF vs QQQ

Quick Verdict

QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FPF offers more diversification with 170 holdings.

Lower Fees: QQQHigher Returns: QQQMore Diversified: FPF

Side-by-Side Comparison

MetricFPFQQQWinner
Expense Ratio1.78%0.18%
AUM$1.8B$455.8B
Dividend Yield8.64%0.41%
Holdings230108
YTD Return-0.45%+17.46%
1Y Return+1.87%+26.02%
3Y Return (annualized)+14.15%+25.51%
5Y Return (annualized)+0.76%+15.12%
Volatility (annualized)14.9%30.6%
Max Drawdown-54.6%-83.0%
Fund FamilyFirst Trust Portfolios (US)Invesco (US)
CategoryAllocation/BalancedEquity
InceptionMay 24, 2013Mar 10, 1999

FPF vs QQQ Performance

First Trust Intermediate Duration Preferred & Income Fund (FPF) 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 FPF returned +1.87% while QQQ returned +26.02%. Year to date, FPF is down 0.45% versus a gain of 17.46% for QQQ.

Over three years, FPF compounded at +14.15% per year against +25.51% for QQQ; over five years the annualized figures are +0.76% and +15.12% respectively. Across the full 13-year window we track, QQQ has the edge at +13.08% annualized vs +0.76%. 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 14.9% for FPF. 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 -54.6% for FPF 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FPF charges 1.78% per year while QQQ charges 0.18%. On a $10,000 position that is $178 vs $18 annually, a gap of $160 per year that compounds over a long holding period. On income, FPF currently yields 8.64% against 0.41% for QQQ.

Holdings Overlap

1.1%overlap

FPF and QQQ share 2 holdings out of 271 unique holdings combined, representing a 1.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FPFWeight in QQQDifference
TMUS1.71%0.90%0.81%
XEL1.95%0.22%1.73%

Frequently Asked Questions

Which is cheaper, FPF or QQQ?

FPF has an expense ratio of 1.78% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $160 per year of difference.

Which performed better, FPF or QQQ?

Over the past year FPF returned +1.87% vs +26.02% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), FPF annualized +0.76% vs +13.08% for QQQ. Past performance does not guarantee future results.

Which is riskier, FPF or QQQ?

QQQ has been the more volatile fund at 30.6% annualized versus 14.9% for FPF. Worst drawdown: FPF -54.6% vs QQQ -83.0%.

Should I hold both FPF and QQQ?

FPF and QQQ have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FPF and QQQ?

FPF and QQQ share 2 common holdings with a 1.1% weight overlap. Combined, they hold 271 unique securities.

Which pays a higher dividend, FPF or QQQ?

FPF yields 8.64% while QQQ yields 0.41%, so FPF currently pays the higher dividend yield.

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