FRI vs QQQ
First Trust S&P REIT Index Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. FRI offers more diversification with 129 holdings.
Side-by-Side Comparison
| Metric | FRI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.50% | 0.18% | |
| AUM | $199M | $496.3B | |
| Dividend Yield | 2.40% | 0.44% | |
| Holdings | 129 | 108 | |
| YTD Return | +18.12% | +17.07% | |
| 1Y Return | +20.80% | +26.39% | |
| 3Y Return (annualized) | +13.66% | +26.08% | |
| 5Y Return (annualized) | +4.82% | +15.18% | |
| Volatility (annualized) | 22.5% | 30.6% | |
| Max Drawdown | -73.3% | -83.0% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 8, 2007 | Mar 10, 1999 |
FRI vs QQQ Performance
First Trust S&P REIT Index Fund (FRI) 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 FRI returned +20.80% while QQQ returned +26.39%. Year to date, FRI is up 18.12% versus a gain of 17.07% for QQQ.
Over three years, FRI compounded at +13.66% per year against +26.08% for QQQ; over five years the annualized figures are +4.82% and +15.18% respectively. Across the full 19-year window we track, QQQ has the edge at +13.05% annualized vs +3.23%. 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 22.5% for FRI. 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 -73.3% for FRI 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FRI charges 0.50% per year while QQQ charges 0.18%. On a $10,000 position that is $50 vs $18 annually, a gap of $32 per year that compounds over a long holding period. On income, FRI currently yields 2.40% against 0.44% for QQQ.
Holdings Overlap
FRI and QQQ share 0 holdings out of 228 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, FRI or QQQ?
FRI has an expense ratio of 0.50% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $32 per year of difference.
Which performed better, FRI or QQQ?
Over the past year FRI returned +20.80% vs +26.39% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (19 years), FRI annualized +3.23% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, FRI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 22.5% for FRI. Worst drawdown: FRI -73.3% vs QQQ -83.0%.
Should I hold both FRI and QQQ?
FRI and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FRI and QQQ?
FRI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 228 unique securities.
Which pays a higher dividend, FRI or QQQ?
FRI yields 2.40% while QQQ yields 0.44%, so FRI 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.